Pedro Arantes
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The Economics of Holding WIP Changes when Queue Size Changes

Whenever WIP is high, queues are high. When queues are high, jobs in the process generate high delay costs. Most of the damage is caused by high-state queues.
#cost-of-delay
#economic-framework
#high-state-queues
#queueing-theory
#work-in-process
Zettelkasten, November 16th, 2022.
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Hypotheses

Theses

Therefore, the cost of a job when the queue state is low increases when the queue is in a high state.

Questions

  1. What is the relationship between WIP and queues?
  2. How do delay costs affect jobs in the process?
  3. Does most of the damage done by a queue come from high-state queues?
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