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

8.7.1 Scenario: Batch Production versus Continuous Production

Intended learning outcomes: Differentiate between batch production and continuous production. Explain the criteria that are important for the decision for one or the other of these concepts.



As a producer of fine chemicals, you plan to introduce a new type of solvent to the market. It is suitable for use in the production of ad­hesives for the automobile industry. The corporate marketing department estimates that 5000 to 10,000 tons of the product can be sold per year. The product design with laboratory tests has been completed. But the industrial production concept for the product remains to be determined. While most of the production processes are actually done on the batch principle (discontinuous or batch production), your engineers now suppose continuous production for this product.

a.    What are the differences between these two concepts? What criteria are important for the decision for one or the other of these concepts?

b.    What is your suggestion regarding the new solvent? Explain the reasons for your decision.

Solution:

a.

In selecting the appropriate production principle, the following points have to be considered:
- Production volume and regularity of demand
- Need for flexibility
- Requirements in terms of proof of origin and quality control
- Technological conditions and safety requirements

b.

In the case of the solvent, the preferred principle could be continuous flow production. The production volume is of adequate size for small facilities for continuous production. Furthermore, it can be assumed that the consumption of the new product will run relatively regularly. At least a proof of origin is not necessary.




Course section 8.7: Subsections and their intended learning outcomes

  • 8.7 Scenarios and Exercises

    Intended learning outcomes: Differentiate between batch production and continuous production. Calculate an example of manufacture of by-products. Elaborate an example of production planning in process industries.

  • 8.7.1 Scenario: Batch Production versus Continuous Production

    Intended learning outcomes: Differentiate between batch production and continuous production. Explain the criteria that are important for the decision for one or the other of these concepts.

  • 8.7.2 Exercise: Manufacture of By-Products

    Intended learning outcomes: Estimate how much money can be invested in a distillation device, if management sets a limit of 2 years maximum for payback on this kind of investment.

  • 8.7.3 Exercise: Production Planning in Process Industries

    Intended learning outcomes: Determine the needed quantity of feed product and the required number of batches per stage for the production of the desired quantity of the active substance.