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  • Economic Batch

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    Mugesh Ranjanendran
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    This document discusses economic batch size and which pencil sharpening process is most suitable for different production levels. The automatic process has the lowest costs for large batch and mass production runs compared to electric, knife, and intelligent processes. While intelligent process costs decrease with scale, automatic process costs decrease starting with large batch production levels. Choosing the process with the lowest costs increases company profits.

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    This document discusses economic batch size and which pencil sharpening process is most suitable for different production levels. The automatic process has the lowest costs for large batch and mass production runs compared to electric, knife, and intelligent processes. While intelligent process costs decrease with scale, automatic process costs decrease starting with large batch production levels. Choosing the process with the lowest costs increases company profits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    8 views1 page

    Economic Batch

    Uploaded by

    Mugesh Ranjanendran
    This document discusses economic batch size and which pencil sharpening process is most suitable for different production levels. The automatic process has the lowest costs for large batch and mass production runs compared to electric, knife, and intelligent processes. While intelligent process costs decrease with scale, automatic process costs decrease starting with large batch production levels. Choosing the process with the lowest costs increases company profits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
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    ECONOMIC BATCH SIZE

    From the diagram above, I choose that Automatic was the most suitable process for sharpening a pencil among the provided 4 process. I choose this process because it showed a decrease of cost with increase in amount of pencil. Although automatic curve showed high cost compare to electric and knife process for prototype and small batch amount of pencil sharpening, but automatic process curve showed more advantage when producing large batch and mass production of pencil. Compare to intelligent process curve, although it showed curve that decrease in cost with amount of pencil until mass production, and this proved that low cost only can be achieved when the pencil is in mass production while automatic can achieved in large batch. Lower the cost of process will increase the profit of company.

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