How companies store things – level 3

03-03-2022 07:00

Traditionally, companies stored enough products to meet customer demand, and they also kept an extra amount for a problem or a sudden increase in demand for their product.

In the 1970s, Toyota executive Taiichi Ohno realized that storing excess parts cost the company money. He invented a system where the company only ordered what was needed, and parts arrived only when they were required. Today, this system is everywhere from supermarkets to airplanes; however, it is quite fragile. If a problem occurs anywhere in the supply chain, then production stops. If there’s a sudden increase in demand, the business can’t respond.

The pandemic showed the fragility of this system where businesses around the world saw unusual problems in both supply and demand. Companies are starting to slightly increase their inventories again, and they’re using technologies to manage problems in the supply chain.

Difficult words: excess (an amount that’s more than necessary or usual), fragile (weak), inventory (material, parts, and finished products that a company owns).

You can watch the video news lower on this page.

What do you think about this news?


News in Levels is designed to teach you 3000 words in English. Please follow the instructions

How to improve your English with News in Levels: 


  1. Do the test at Test Languages.
  2. Go to your level. Go to Level 1 if you know 1-1000 words. Go to Level 2 if you know 1000-2000 words. Go to Level 3 if you know 2000-3000 words.


  1. Read two news articles every day.
  2. Read the news articles from the day before and check if you remember all new words.


  1. Listen to the news from today and read the text at the same time.
  2. Listen to the news from today without reading the text.


  1. Answer the question under today’s news and write the answer in the comments.


  1. Choose one person from the Skype section.
  2. Talk with this person. You can answer questions from Speak in Levels.


Stock images by Depositphotos