Final answer:
The statement about JIT/lean approach being best for operations with unstable demand is false. JIT is most suited for high-volume, stable demand environments, and custom operations with variable demand might require a more agile approach.
Step-by-step explanation:
The statement that the JIT/lean approach is best used for custom operations that experience fairly unstable demand is false. The JIT (Just-In-Time) or lean manufacturing approach is actually best suited for operations with high-volume, stable demand. This approach emphasizes the production of goods to meet demand precisely in time, quantity, and quality, thus minimizing waste and reducing the need for large inventories. Operations with unstable demand can make JIT implementation challenging due to the unpredictability of production scheduling and inventory management. For custom operations with unstable or unpredictable demand, a more agile or flexible production approach might be more suitable. This would allow the operation to adapt quickly to changing demands without the negative consequences that could arise from applying JIT principles in such an environment.