Small lot size production must be balanced with the costs of ___________:
A) Inventory
B) Labor
C) Setup time
D) Variation
E) Transportation

Question

Quizplus · Accepted Answer

Small lot size production means that the setup time for each production run is relatively high compared to the actual production time. Therefore, it is important to balance the costs of setup time with the benefits of producing small lot sizes. Inventory and transportation costs may also be affected by small lot sizes, but they are not as directly related to the production process as setup time. Labor costs and variation may also be impacted but are not as significant in comparison to setup time.

Small Lot Size Production Must Be Balanced with the Costs