Items are made in blocks or batches. . The manufacture of the medicine is an example. Items produced are labelled with a batch number and if there is a problem this allows for all the items in a batch to be recalled.
Advantages of batch production Disadvantages of batch production
Unit cost may be lowered If only batches are made then the company may have trouble finding workers prepared to work part time when batches are needed.
There is a lower chance of the company producing too many of a product and losing money due to the product not being sold. The company will still have to pay rent of premises that are only in use when a batch i