First, a brief digression into the history of batch size. The most commonly used formula for calculating the optimal batch size was developed by Kurt Andler (1929).
With increasing automation and the associated low to very low set-up costs, coupled with rising storage costs, the optimal order quantity shown above has shifted further and further to the left, towards batch size 1.
At the same time, processes have been digitised and accelerated, thereby delivering a further significant cost advantage through the reduction in batch sizes.
The purpose of batch size 1 is to meet customer requirements regarding the customisation of products. However, in order to achieve profitable and cost-effective production despite a batch size of 1, the developments mentioned at the outset were necessary.
Batch size 1 is very sustainable!
The advantages of batch size 1 are manifold. First of all, it is highly efficient, as there is no wastage of materials or resources. Furthermore, it is very flexible, as production can be adapted to demand at any time. In addition, batch size 1 is also very cost-effective, as large quantities do not need to be produced and there are no storage costs. This also means no stock piles and no slow-moving items that need to be disposed of.
However, there are also disadvantages to batch size 1. Production time is generally longer, as each product is manufactured individually.