This research investigated in depth the effect of the level and the locatio
n of protective capacity relative to the location of the constraint through
a simulation experiment. A production line with four stages is simulated.
Location of the constraint, level of protective capacity, processing time v
ariation and system down time are included as experimental factors. ANOVA i
s used for the analysis of the results, followed by Tukey's means test. The
results show that protective capacity has a significant effect on shop per
formance, however with diminishing returns. The location of the constraint
resource also plays a significant role in shop performance. The results als
o indicate that the extent of benefits derived from protective capacity or
constraint location depends on the level of variability and system downtime
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