Managing sequence-dependent setup times - The target conflict between output rate, WIP and fluctuating throughput times for setup cycles

Sequence-dependent setup times cause a trade-off between output rate, WIP and fluctuating throughput times. Companies usually face this trade-off by bundling similar orders in setup families without quantifying its impact on the logistic objectives. This paper presents a simple model to quantify the influence of setup-optimised sequencing on the output rate, WIP and throughput times. On the one hand, the aim is to create a deeper understanding for the consequences of setup-optimised sequencing. On the other hand, companies are enabled to actively manage and position in the trade-off between the conflicting targets.