Lot Production

Thinking of production scheme from the aspect of production continuity, the scheme to unify products by a certain amount as one lot and to produce by lot is called Lot Production. This scheme is useful to the case where the product demand is not high enough to produce continuously, but the demand is not low enough to produce for each order. When thinking of this production scheme in terms of order time, it is used for both Make to Stock and Make to Order. But in terms of  in product type's or quantity's aspect, this scheme is middle-mix middle-volume production. In this case, it is crucial to improve the operation availability of machine and facilities due to the intermittent production by lot. Thus less frequent logistics are required and as the result the lot size may probably be larger, which might lead to excessive inventory. Therefore it is a key point in lot production to minimize the lot size and to optimize the production flow by shortening the operation time for preparation.


Related term: Production System