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Batch Size
A batch size represents the number of units produced in a given production run.
The size of a batch is determined by the flow of material, capacity constraints, downstream demand, the number of products, and setup time. Smaller batches (say 200 units or less) can improve the flow of material through the factory, and can help to reduce work in process. Smaller batches however incur much higher setup costs, as machinery must be set up differently for each batch. Larger batch sizes can reduce material flow (unless transfer batches are used) and increase work in process, but they make more efficient use of production capacity, as less time is spent setting up machinery.