The limits of Japanese production systems

Zangwill claims that reductions in setup cost and time can paradoxically increase inventory levels and holding costs without bound and, thereby, blow up total costs. One limitation of this claim is that inventory does not grow without bound for a system with more than one item. Inventory increases conditionally. The paper offers such a condition. Use of this condition can ensure wherever possible, that setup time reductions do not backfire through longer waiting times and higher inventory levels.