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.