Author: Hilmola, Olli-Pekka

Source: International Journal of Manufacturing Technology and Management, Volume 6, Numbers 1-2, 10 May 2004 , pp. 125-136(12)

Publisher: Inderscience Publishers

Abstract:

The purpose of this paper is to examine the effect of manufacturing transfer batch sizes to financial performance, using an unbalanced production process as an exemplified situation. According to the most recent changes in the manufacturing business environment, as well as earlier research in the field (especially the Theory of Constraints (TOC) related research), manufacturing organisations should favour decisions related to lead time improvement and ignore the proposals of cost saving models (Economic Order Quantity, Economic Production Quantity). The results of this paper support this view and it seems that manufacturing organisations using transfer batching are able to serve versatile customer orders in a profitable manner, regardless of actual order size. On the contrary traditional management methods will lead to the situation, where some potential customer groups should be ignored. Despite these interesting results, this paper also proposes further avenues of research on the topic of transfer batching. Lead time improvement creates an interesting trade off situation between two different components (lead time improvement based purely on transfer batch size and non-constraint cycle time savings).

Keywords: COMPUTING JOURNALS; Computing Science, Applications and Software; Internet and Web Services; TECHNICAL JOURNALS; Materials and Manufacturing; MANAGEMENT JOURNALS; Operational Management, Marketing and Services; Policy and Organisational Management

Document Type: Research article

DOI: http://dx.doi.org/10.1504/IJMTM.2004.004511

Affiliations: 1: Logistics, Turku School of Economics and Business Administration, Rehtorinpellonkatu 3, FIN-20500 Turku, Finland

Publication date: 2004-05-10

More about this publication?

• International Journal of Manufacturing Technology and Management publishes original, empirical and review papers; case studies; conference reports; technology reports and new; book reviews and notes; commentaries. In addition to the regular issues of the journal, International Journal of Manufacturing Technology and Management
• Information for Authors
• Submit a Paper
• Subscribe to this Title
• Terms & Conditions
• Newsletter
• Blog
• ingentaconnect is not responsible for the content or availability of external websites

Related content

• In this: publication
• By this: publisher
• In this Subject: Materials & Manufacturing ,  Technology
• By this author: Hilmola, Olli-Pekka

Website © Publishing Technology. Article copyright remains with the publisher, society or author(s) as specified within the article.

• Terms and conditions
• Privacy policy
• Information for advertisers