How companies store things – level 1

03-03-2022 07:00

Companies buy and sell materials and parts. Materials and parts are the things that help them make the things that they sell. They always need enough of them.

Companies store a lot of materials and parts. It costs a lot of money. The idea changes in the 1970s in Japan.

Toyota is a company which makes cars. The company uses a new system. It keeps only materials and parts which it needs. Toyota saves a lot of money.

Many companies do the same as Toyota. Then the new idea brings problems. Sometimes material comes late. Sometimes many customers want something at the same time. Companies can do nothing until they get their materials.

A similar situation happens during the coronavirus. Companies all over the world have these problems. They don’t have enough materials. It is a good idea to store some materials and parts.

Difficult words: store (to keep something to use in the future), system (the way that things or people work together), customer (a person who buys something).

You can watch the original video in the Level 3 section.

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