Financial Models and Tools for Managing Lean Manufacturing

Appendix 2: Simulation Data

Inventory Reduction Policy 2 Moderate-Reduction; 50 Percent Reduction in On-Hand Finished Goods Inventory Levels over a 12-Month Period

Gross Profit Using the Full Absorption Costing Method Inventory Reduction Policy: 50% Reduction Over 12 Reporting Periods

Percent

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

sum

mean

std. dev.

Series (yr)

1

3.62%

34.04%

9.52%

6.61%

24.90%

16.20%

11.05%

15.83%

1.94%

13.82%

14.80%

23.06%

171.76%

15.61%

9.01%

2

5.39%

30.12%

14.58%

9.44%

5.77%

34.12%

10.48%

11.40%

9.18%

7.35%

22.59%

0.35%

155.38%

14.13%

10.49%

3

9.51%

11.25%

21.60%

15.60%

6.27%

22.32%

7.42%

43.35%

1.10%

14.78%

1.61%

25.96%

171.27%

15.57%

12.40%

4

18.15%

14.99%

8.69%

9.05%

11.82%

24.32%

8.28%

13.44%

8.17%

31.97%

-0.88%

35.01%

164.85%

14.99%

10.99%

5

18.24%

11.64%

17.78%

7.83%

16.29%

19.45%

-9.39%

30.60%

17.05%

26.66%

-0.16%

8.97%

146.72%

13.34%

11.43%

6

18.86%

15.66%

7.65%

14.88%

14.29%

25.76%

2.43%

21.72%

1.08%

9.82%

34.68%

3.57%

151.53%

13.78%

10.47%

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