Interim report on the research into the use of formula for calculating economic batch sizes

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.