The problem with waiting time
This white paper discusses the reduction of waiting time in a process, and uses a simple experiment to show that discrete event simulation is the most effective way to achieve real optimization of any process.
Every process or logistics problem can be viewed as a distribution problem of the cost of waiting times. Factors that impact these waiting times include but are not limited to variability, quality, equipment reliability, staff reliability, and system load factors. When each type of waiting time increases or decreases it has an impact on the other; this creates a tug of war between the costs of waiting. For example, if you wanted to satisfy the demand of every customer immediately you would have to maintain a finished goods supply of every product you make. The cost of product waiting would sky rocket. On the other hand, if you wanted to reduce your work in process you run the risk of not having product at the right place at the right time; your machines may be idle waiting for product, thus increasing the cost of waiting for machines.
CLICK HERE to download the full white paper.