Quantitative Analysis of Manufacturing Flexibility and Inventory Management: Impact on Total Flow Time in Production System

Improving responsiveness and efficiency in production systems requires an understanding of how manufacturing flexibility and inventory management interact under conditions of uncertainty. This study examines the combined effect of four types of flexibility, machine, labor, routing, and volume, together with the use of buffers, on the total flow time of production batches. A total of 84 experimental configurations were simulated, of which 35 were feasible and statistically valid, using a discrete-event simulation model developed in Arena and validated with industrial data. The results show that combining high machine and labor flexibility reduces total flow time from 5450 to 3050 min (a 44% decrease), whereas routing and volume flexibility exhibit minor effects. Moreover, the inclusion of buffers further improves performance, reducing times by approximately 1000 min in low-flexibility configurations. These findings provide robust quantitative evidence to guide the design of adaptive production systems by jointly evaluating the flexibility and inventory management dimensions that are typically studied in isolation.