Abstract: | Often in lean manufacturing, multiple products are produced in U‐shaped manufacturing cells to simultaneously achieve product variety and production efficiency. We examine two design issues for mixed‐model U‐lines: work rules (a first‐come‐first‐serve rule and a crossover‐and‐return rule) and inventory flow choices (direct flow and buffered flow). Simulation results indicated that throughput and labor utilization can be improved by implementing a “buffer” with the first‐come‐first‐serve rule. Interestingly, the effectiveness of an inventory flow choice was dependent on the work rule (interaction effect), and relationships among performance dimensions differed across the designs. |