Financial Models and Tools for Managing Lean Manufacturing

Appendix 3: Simulation Data

Dataset 3 Inventory Reduction Policy 3 Aggressive-Reduction; 50 Percent Reduction in On-Hand Finished Goods Inventory Levels over a 6-Month Period and No Further Reduction through the Remainder of the Evaluation Period

Finished Goods Inventory Trends Inventory Reduction Policy: 50% Reduction Over Initial 6 Reporting Periods and No Further Reductions

Percent

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

sum

mean

std. dev.

Series (yr)

1

-1.09%

27.88%

3.60%

1.32%

19.46%

8.69%

16.90%

21.90%

6.93%

19.12%

19.81%

26.28%

170.80%

14.23%

9.90%

2

0.51%

23.91%

8.51%

3.50%

0.75%

27.90%

16.88%

17.83%

15.02%

12.70%

26.85%

6.07%

160.44%

13.37%

9.72%

3

4.31%

6.51%

16.16%

9.92%

0.87%

16.78%

12.07%

49.56%

8.64%

20.82%

6.45%

26.71%

178.81%

14.90%

13.16%

4

11.72%

8.97%

3.07%

3.42%

6.89%

18.70%

13.97%

18.93%

13.10%

34.54%

7.17%

40.73%

181.23%

15.10%

11.79%

5

12.18%

5.64%

11.89%

2.42%

10.06%

12.77%

-4.88%

28.58%

21.31%

40.26%

6.62%

12.58%

159.43%

13.29%

12.03%

6

12.61%

9.09%

2.16%

8.93%

8.07%

19.16%

7.38%

28.90%

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