| Article ID: | iaor199155 |
| Country: | United States |
| Volume: | 29 |
| Start Page Number: | 41 |
| End Page Number: | 44 |
| Publication Date: | Dec 1988 |
| Journal: | Production and Inventory Management Journal |
| Authors: | Replogle Stephen H. |
This article addresses the issue of lot sizing from a strategic perspective. While current lot-sizing techniques treat setup cost as a constant, setups can actually exhibit a strong learning curve effect through worker experience, managerial effort, technology, and methods engineering. Smaller lot sizes can be used as a strategic tool to improve a firm’s future competitive position.