On Inventory Abatement via Manufacturing Randomness Reductions*
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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.
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