Being too 'lean' with inventory actually wastes more energy because every little hiccup causes a massive power drain.
March 19, 2026
Original Paper
The Limits of Lean: Nonlinear Trade-offs Between Inventory Leanness and Energy Efficiency in Energy-Intensive Manufacturing
SSRN · 6438147
The Takeaway
It is a core tenet of modern management that being 'leaner' is always better for efficiency and the environment. However, this study finds a 'tipping point' (at roughly 17% below predicted inventory) where the system becomes so fragile that the resulting stop-and-go energy waste outweighs the savings from holding less stock.
From the abstract
Lean inventory management is regarded as universally beneficial for manufacturing efficiency, yet its impact on energy performance challenges this assumption. This study reveals that manufacturing firms pursuing extreme leanness inadvertently compromise energy efficiency—a concern as organizations face pressure to achieve operational excellence and environmental sustainability. We examined this relationship by investigating how inventory leanness affects energy efficiency in energy-intensive man