Explain three factors a manufacturer considers when deciding the size of a production batch. [3]

Assessment: Design & Technology: Product Design 9252 | Paper 1 Mock 01 | Technical, designing and making principles Subject: Design & Technology: Product Design - 9252

Question 1 Report

Explain three factors a manufacturer considers when deciding the size of a production batch. [3]

Answer Details

Batch size is a balance between the cost of setting up production and the cost and risk of holding stock. Three relevant factors are:

  • Forecast demand: making more than customers will buy ties up money in unsold stock. [1]
  • Changeover time and cost: frequent small batches require more resets, causing more lost production time. [1]
  • Storage cost and shelf life: a large batch needs storage space and may deteriorate or become obsolete before it is sold. [1]
  • Available cash: a large amount of work in progress and finished stock ties up the company’s money. [1]

Any three explained factors are sufficient. [3]

Read lesson note on Scales Of Production (OxfordAQA)
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