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On work in progress optimisation

In this paper, we investigate how to best optimise the level of work in progress (WIP) in a real world factory. Using a simulation model of the factory, we show that an optimum level of WIP can be attained. By systematically varying the maximum allowable level of WIP within different model runs, results show that the throughput reaches a high level very quickly and then tapers off. The production lead times, in contrast, begin at relatively low levels and increase after the optimum WIP level has been reached.