HOTSPOT A company plans to use Dynamics 365 Supply Chain Management. Instructions: For each of the following statements, select Yes if the statement is true. Otherwise, select No. NOTE: Each correct selection is worth one point.

Statement 1 (Yes): Lean manufacturing in Dynamics 365 Supply Chain Management is centered on the "Pull" principle. It utilizes Kanban signals to trigger production only when there is actual demand, thereby reducing inventory waste and ensuring production aligns strictly with customer requirements.

Statement 2 (No): The use of recipes, formulas, and ingredients to mix components in specific proportions is the defining characteristic of Process Manufacturing. Lean manufacturing instead focuses on production flows and activities to minimize waste in discrete or repetitive environments.

Microsoft Learn: "Lean manufacturing overview." Section: "The pull principle." [Official Vendor Documentation].

Microsoft Learn: "Process manufacturing overview." Section: "Formulas and Batch Orders." [Official Vendor Documentation].

Womack, J. P., & Jones, D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Free Press. (Defines Lean as providing exactly what the customer wants with minimum waste).

Heizer, J., Render, B., & Munson, C. (2020). Operations Management: Sustainability and Supply Chain Management. Pearson. Chapter 16: JIT and Lean Operations. [Academic Publication].