What type of production leads to unnecessary inventory and handling?

Prepare for the FBLA Supply Chain Management Test with flashcards and multiple choice questions. Each question includes hints and explanations. Ensure your success and confidence on the exam day!

Overproduction is the type of production that leads to unnecessary inventory and handling. When a company produces more goods than are needed to meet current demand, it results in an excess inventory that must be stored, managed, and eventually sold. This surplus can lead to increased costs associated with storage, handling, and potential obsolescence of products. Additionally, excessive inventory can tie up capital that could be better used elsewhere in the organization.

Lean production, by contrast, focuses on minimizing waste and ensuring that production aligns closely with actual demand, which helps prevent overproduction and the challenges associated with excess inventory. Standardized work emphasizes efficiency and consistency in processes without necessarily leading to overproduction. Six Sigma is a data-driven approach aimed at improving quality and reducing defects, which also does not directly relate to excessive inventory production. Thus, overproduction is clearly linked to unnecessary inventory and handling due to the surplus created beyond the immediate needs.

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