Batch production is useful for a factory that makes seasonal items or products for which it is difficult to forecast demand.
Batch production has many "pros" and "cons" but is effective and used worldwide, mainly by larger businesses on higher profit margins.
There are several advantages of batch production; it can reduce initial capital outlay because a single production line can be used to produce several products. As shown in the example, batch production can be useful for small businesses who cannot afford to run continuous production lines. Also, companies can use batch production as a trial run. If a retailer buys a batch of a product that does not sell then the producer can cease production without having to sustain huge losses.
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Last updated on Thursday July 17, 2008 at 08:26:41 PDT (GMT -0700)
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