Determination of batch size at a bottleneck machine in manufacturing systems

In manufacturing systems, there often exists a bottleneck machine whose capacity is equal to or less than the market demand. Any idle or waste time at the bottleneck machine directly impacts the output of the entire plant because it results in a loss of throughput. In order to maximize the capacity utilization by less setup losses at the bottleneck machine, the parts are often produced in batches. Traditionally, most batch sizing decisions are made based on the economic order quantity model where setup and inventory holding costs are considered. This paper presents an alternative method to determine batch size at a bottleneck machine. We present a new objective function and cost factors for batch sizing and investigate queuing and throughput models. A linear search algorithm is introduced to find the optimal throughput rate and batch size at the same time. Numerical examples are examined to see how the batching algorithm works.