A simulation-based comparison of batch sizes in a continuous processing industry

The benefits of lot size reduction in discrete manufacturing firms have been touted to the point that few would question their veracity. However, the attention received by process industries, those with continuous manufacturing processes, pales in comparison to the discrete manufacturers. This paper uses a simulation, based on an actual process industry, to investigate the results of two lot size (or batch size) reductions within this continuous processing firm. Simulation results are used to compute five TOC (theory of constraint) performance measures which are then compared among the three batch sizes. Results indicate that lot (batch) size reductions can benefit continuous process industries as well as discrete manufacturers. Furthermore, certain managerial implications are suggested.