Why are small batch sizes considered crucial in lean production?

Prepare for the ASU ACC241 Uses of Accounting Information II Exam. Strengthen your knowledge with flashcards and multiple choice questions, complete with hints and detailed explanations. Get ready to ace your exam!

Small batch sizes are considered crucial in lean production because they allow for quicker customer response. In a lean production system, flexibility and responsiveness to customer demands are essential. By producing smaller batches, companies can adapt more swiftly to changes in customer preferences, minimize excess inventory, and reduce lead times. This approach leads to more efficient processes where products can be delivered to customers in a timely manner, aligning production closely with actual demand.

This responsiveness enhances customer satisfaction, as businesses can quickly accommodate changing orders or preferences, enabling them to remain competitive in a dynamic market environment. Thus, the emphasis on small batch sizes directly supports the lean philosophy of minimizing waste and maximizing value delivered to the customer.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy