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Advantages of mixed-model strategies


Since larger batch sizes lead to (the need for) more inventory, the batch size has to be balanced and chosen with both the positive (greater capacity) and negative (larger inventories) results in mind. A strategy, in which smaller batch sizes (down to a size of one just flow unit) are chosen, is called a mixed-model strategy. Since smaller batch sizes have a negative impact on capacity because of the set-up time, reducing the set-up time is an important enabler for running a mixed-model strategy.

These lecture notes were taken during 2013 installment of the MOOC “An Introduction to Operations Management” taught by Prof. Dr. Christian Terwiesch of the Wharton Business School of the University of Pennsylvania at Coursera.org.
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2 Comments

  1. […] flow units (e.g. cheeseburgers and veggie sandwiches) with one set-up time in between, a batch in a mixed-model production is re-defined as a number of mixed flow units produced during a certain amount of time (before the […]

  2. […] types can be changed more often and flexibility is increased. This idea lies at the heart of the mixed-model production, which also profits from configuring a network of production facilities for pooling in order to be […]

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