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On Inventory Abatement via Manufacturing Randomness Reductions *
Author(s) -
ArreolaRisa Antonio
Publication year - 1998
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1998.tb00884.x
Subject(s) - randomness , lead time , production (economics) , operations research , computer science , operations management , service (business) , manufacturing , business , industrial organization , economics , microeconomics , mathematics , marketing , statistics
Under a continuous improvement framework, the policy of abating inventory via reductions in manufacturing randomness is considered. To explore this policy, a model of a real‐world production‐inventory system is developed, tested, and studied. The results suggest that manufacturing randomness reductions, even substantial ones, may not necessarily lead to inventory abatement, and paradoxically may lead sometimes to an inventory increase. In these cases, however, manufacturing randomness reductions will translate into higher customer service levels.