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Production volume Lead time Customer-producer interface Handling of fluctuations in demand


Basis of Planning


Inventory level


Product category and cost

High Low Limited / Distant Safety stock of units

End item forecasts

High finished goods inventory & associated carrying costs Standardised products with lower price / unit

Low High High at sales level & Design level Planning of excess capacity & raw material stock Backlogs & Marketing intelligence reports Low inventory

Special products(high variety) & high cost per unit

Medium Medium High at sales level Planning of standard modules &parts Backlogs and trend analysis Major parts / modules held in inventory

Modular parts / subassembly, medium and high price per unit

Job shop production -



Job produced only once – One time order. The customer may or may not comeback for further orders Jobs produced at irregular intervals – The customer visits the firm to place orders for the same type of product but at irregular intervals. The planning work starts only after receiving the order. In case, the firm maintains the data about the previous orders, it may be utilised to facilitate and complete the order in time for further orders. Jobs produced periodically at regular intervals - The customer visits the firm to place orders for the same type of product at regular intervals. The firm can very well plan in anticipation and can start the production as soon as teh order is booked For eg. Tailor shop, Cycle repair shop, Automobile garage, Job typing, small workshops

Batch Production -

It is nothing but the manufacture of number of identical products either to meet the specific order or to satisfy the demand


Here also, the nature of production with considerable quantities, may be only once, at regular intervals or irregular intervals


For eg. Readymade dress makers, Cosmetics production, pharma industries

Continuous production -

Mass production o The same type of product is produced in bulk quantities to meet the demand of an assembly line or the market o This system needs good planning for material in bulk quantities, process, toolings, maintenance of machines and instruction to operators 6

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