Abstract
The objective of this paper is to investigate the impact of the number of product variants on the turnover rate in a production-inventory system. The original problem arose in a Swedish firm which manufactures candy.
The model set forth includes a two-stage production system consisting of stocks for raw material, two consecutive manufacturing facilities with in-between buffer stocks, and final inventories for finished goods. The way in which the turnover rate is affected by the number of end-product variants is discussed and the results derived theoretically are compared with empirical data