Equipment flexibility vs. inventory: A simulation study of manufacturing systems

Technological flexibility requires very high initial investments and theref ore a decision to acquire it is both risky and strategic in nature. The obj ective of this paper is to find out the technological flexibility requireme nts in just-in-time manufacturing under different environmental situations. The simulation results show that the incorporation of flexibility in a man ufacturing system is vital. The choice of the extent of flexibility is driv en by the market and economic factors. (C) 2001 Elsevier Science B.V. All r ights reserved.