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Homework - Essay Example

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However, on the flip side, if the batch size is less, the inventory levels would come down drastically. One must understand that the average inventory is a result of the sum of…
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Download file to see previous pages This discusses how inventory as a whole may just be given representation by average inventory and thus solve the related issues which crop up from time to time.
11- Suppose an operation has excess capacity (i.e., it is not a bottleneck); however the set up time between batches is not insignificant. Should process batches be large or small? What determines the size of a process batch?
Process batches should neither be large nor small. However their size should be equal to the size of the operation so that neither excess capacity is an issue nor minimal levels stand as a concern. The need is to know how excess capacity can be kept at a safe distance and so is the case with minimal levels where set up times focus more on how time between batches can be increased or decreased as per the need. Therefore, the set up time between batches should be considered in essence to have a better know-how of how things shall shape up within the batch routines. It will take care of all the concerns that either excess capacity or under capacity may have at a given time and thus protect the batches as ...Download file to see next pagesRead More
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