Does protective capacity assist managers in competing along time-based dimensions?

This article is a presentation of the results of a computer simulation experiment which investigated the use of protective capacity as a means to reduce cycle times and inventory holdings for a production line. The results of this study indicate that lines with protective capacity do achieve lower cycle times and require less inventory than lines without protective capacity. The study also provides evidence that the throughput of lies with protective capacity are less affected by disruptions in the form of downtime and processing time variability then lines without protective capacity.