| A production system's flexibility and response time, with respect to changing production cycle times or demands, can serve as important, strategic advantages. Yet little research has illuminated the influence of cycle time and demand variability on inventory levels. Research models on production system capability and past research on organizational adoption of a kanban system guided the current study's assessments. The purpose of this research was to explain the effects of cycle time and demand variability on finished goods inventory, as well as develop an analytic framework and practical tools that could enable production personnel to manage their processes more efficiently. Through a quantitative study that used a 32 factorial experimental design and simulation model, this study answered research questions about the effects of cycle time and demand variability on finished goods and how production personnel could control the level of impact of these 2 variables. The results indicated that cycle time and demand variability do affect inventory levels, but other variables can as well. Further study of production line variability, from different inputs, is recommended. Through modeling and analytical tools, this study illustrated that sustainable products and efficient production methods can positively affect the health of consumers, the safety of workers, the benefits of communities, and the economic viability of companies. These findings will contribute to positive social change by informing the efforts of firms who desire sustainable business models. |
