Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

13.4.1 Order Splitting, or Lot Splitting

Intended learning outcomes: Explain reducing lead time for operation i by using a splitting factor > 1. Describe how the split offset factor offsets the split lots in time.


Order splitting or lot splitting means distributing the lot to be produced by an operation among two or more machines or employees at a work center for processing. This implies split lots.

Splitting reduces lead time, but it incurs additional setup costs, since employees must set up multiple machines. Figure 13.4.1.1 shows the situation.

Fig. 13.4.1.1       Reducing lead time for operation i by using a splitting factor > 1.

The splitting factor for an operation expresses the degree of its potential splitting.

The initial value of the splitting factor is 1, that is, “no splitting.” Where a splitting factor > 1 is given, run time is divided by this value. To calculate the costs of the operation, however, setup load must be multiplied by the splitting factor.

The split lots may be worked on in parallel or be finished at points that are offset in time.

A split offset factor expresses the possible temporal shift of the split lots, according to the principle illustrated in Figure 13.4.1.2.

The split offset factor is expressed as a percentage of the operation time after splitting. The initial value of this factor is zero, that is, “no split offset.”

Fig. 13.4.1.2       The split offset factor offsets the split lots in time.



Course section 13.4: Subsections and their intended learning outcomes

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