The Batch World

Batches also capitalize on specialization. A person can become really good at a task he or she performs repetitively. The narrow specialist probably often costs less than the generalist does anyway. If you cross-train someone, they will want more money. 

R Requirements or demand this is usually forecasted for the coming period, often a year, expressed in units. 

The operations research field has given us the means of calculating an optimal batch size. It relies on minimizing the total cost of procuring and carrying a product in inventory. An efficient order (batch) size, or economic order quantity (EOQ), is computed as follows  

The EOQ is that quantity which minimizes the overall cost of inventory. The variables include those in Table 28.1. 

Assumptions built into the equation must be understood. First, the equation assumes that demand is continuous and constant. Of course, this 

Concentrating work into batches also results in high utilization of equipment and manpower. Everyone is busy and little time is lost to idleness. The batch operation is also easier to manage. One can easily track larger batches of parts. Moving one item at a time takes as much time and effort as moving 

R = Requirements or demand. This is usually forecast for the coming period. It s expressed in units. 

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