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Types of Process Technologies - Batch Production
Under this system the manufacturing is done in batches or groups or lots either on the basis of customer order or with a hope of a continuous demand of the product. Under this system medium scale production is warranted.In batch production machines and equipment are made available for the next batch as soon as the production of first batch is completed. The best example of this type of production system is chemical industry where different medicines are produced in batches.
Both job or batch productions are similar in nature and almost have the same features except in regard to the quantity of production. In job production one single product is manufactured at a time in batch production. Strictly speaking batch production is an extension of job production. Prof. Drucker has grouped these two types of production systems as unique product production.
Given the following data for a particular inventory item: Usage 500 units/week Ordering $40 per order Carrying Cost $.01 per unit per week Lead Time 3 weeks Price $.50 per unit a.
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