Financial Models and Tools for Managing Lean Manufacturing

Appendix 1: Simulation Data

Inventory Reduction Policy 1 No-Reduction; Maintain Finished Goods Inventory Levels throughout the 12-Month Evaluation Period

Finished Goods Inventory Trends Inventory Reduction Policy: No Reduction

Percent

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

sum

mean

std. dev.

Series (yr)

1

8.34%

37.95%

16.10%

13.21%

29.39%

24.70%

16.90%

21.90%

6.93%

19.12%

19.81%

26.28%

240.63%

20.05%

8.81%

2

10.27%

33.30%

23.13%

15.82%

10.78%

40.30%

16.88%

17.83%

15.02%

12.70%

26.81%

6.10%

228.93%

19.08%

10.08%

3

14.71%

15.99%

25.20%

23.26%

11.64%

25.10%

14.39%

48.86%

8.64%

20.82%

6.45%

26.42%

241.49%

20.12%

11.27%

4

24.58%

20.99%

14.27%

14.70%

16.75%

29.89%

13.97%

18.93%

13.10%

34.50%

7.22%

40.73%

249.65%

20.80%

9.87%

5

24.30%

17.62%

23.01%

12.10%

24.35%

26.07%

-4.88%

27.47%

17.96%

35.67%

14.32%

12.49%

230.48%

19.21%

10.26%

6

25.11%

22.20%

13.11%

20.85%

20.51%

31.43%

7.38%

29.75%

6.61%

14.74%

38.82%

9.56%

240.08%

20.01%

10.16%

7

9.70%

42.82%

1.11%

23.88%

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