Abstract:
This report analyses the replies and subsequent conversations held
with companies. Based on this analysis it is shown that various factors
have to be considered Then deciding what is an Economic Batch size, and
that the batch size given by the formula Q =√200AR
UtI
is not necessarily
the size which provides the best economic gain to a company.
A relationship is formulated between the percentage increase in total
unit cost for given variations from the batch size:
so that
companies may determine what alteration to this batch size is acceptable
or desirable under given operating conditions.
The factors to be included in the terms A (set up cost) Ut (unit manufacturing cost), and. I (holding charges expressed as a Percentage of
total manufacturing costs) are discussed, and practical methods of
calculating Economic Batch Quantities discussed.
Finally a review is made of further research work required.
