388. Critical WIP

𝑊0=𝑟𝑏𝑇0

The amount of work-in-process inventory at which a deterministic line just barely achieves its bottleneck throughput.

388.1. Why it’s “critical”

For deterministic lines, 𝑊0 is the minimum WIP that achieves maximum throughput. Beyond 𝑊0, you’re tying up capital without throughput gain.

388.2. Real lines need more WIP

Variability makes the curves wider — to achieve close-to-𝑟𝑏 throughput on a real (variable) line, you need WIP somewhat above 𝑊0. How much above depends on variability — see best/worst/PWC curves.

PWC throughput at 𝑤 WIP:

THPWC=(𝑤𝑊0+𝑤1)𝑟𝑏

For 𝑤=2𝑊0: TH = (2𝑊02𝑊0+𝑊01)𝑟𝑏(23)𝑟𝑏. So real lines need 𝑤𝑊0 to approach 𝑟𝑏.

388.3. Usage

388.4. Worked example

Line: bottleneck produces 100 units/hour (𝑟𝑏=100), raw processing time 𝑇0=3 hours.

𝑊0=1003=300units

Need at least 300 units of WIP in the line to keep the bottleneck fed.

For a real (variable) line, set CONWIP cap at 𝑤=400500 units to hit close to 𝑟𝑏.

388.5. See also