What happens to the average time in queue (waiting in line) and average time in

Question

What happens to the average time in queue (waiting in line) and average time in system (waiting in line or being processed) as we move from releasing production orders for large quantities with a long time between orders, to using smaller quantities with a shorter time between orders? When we studied the EOQ model we saw the effect on product inventory levels (average cycle stock = Q/2., “large triangles” vs. “small triangles”,etc.), but now we are investigating the effect on the production process that makes the items in question.

Explanation / Answer

Producing in smaller lot size with less time between two lots is always better as it has many benefits such as

Less floor space needed

Less inventory space neede

Less expenditure on raw material purchase at a time

Less chances for wastage and defects eneration

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