Advantages of small-lot sizes. Lean production refers to the approach of the management aiming to cost-cutting by providing quality products to the customer by an efficient handling of input. In this approach, the management does not add any value-added thing to the production product and tried to eliminate or minimize the additional cost such as holding cost, transportation cost, stocks, and overproduction. It is composed of components Small lot sizes are a component of lean production. It produces on small scale and thus requires small capital and space. It is beneficial in terms of cost-cutting and reduces the overproduction cost.

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Chapter 16, Problem 9Q

Summary Introduction

To identify: Advantages of small-lot sizes.

Lean production refers to the approach of the management aiming to cost-cutting by providing quality products to the customer by an efficient handling of input. In this approach, the management does not add any value-added thing to the production product and tried to eliminate or minimize the additional cost such as holding cost, transportation cost, stocks, and overproduction. It is composed of components

Small lot sizes are a component of lean production. It produces on small scale and thus requires small capital and space. It is beneficial in terms of cost-cutting and reduces the overproduction cost.

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