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Manufacturing Control through Economic Size of Production Lots
ISSN: 0148-7191, e-ISSN: 2688-3627
Published January 01, 1929 by SAE International in United States
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PRODUCTION of parts in lots, rather than continuously, may sound like a throwback in the automotive industry, but analysis shows that forgings, stampings, body parts and hardware, replacement parts and other parts are made in lots even in large-production manufacturing organizations. Formulas presented by Professor Raymond determine the size of lot that can be manufactured most economically, and show when the change should be made to continuous production.
Consideration is given even to such factors as cost of the space for finished stores and return on the investment in finished parts. The lots indicated are not absolute quantities but are designated in the form of economic ranges that are practicable until there is a marked change in sales or other conditions. The formulas can also be applied to help determine the type of handling equipment that will be most economical to use.
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