Batch production is a method used to produce or process any product in groups that are called batches, as opposed to a continuous production process, or a one-time production. An example of batch production can be found in a bakery. The products, for example bread, are made in batches of however many will fit in the bakers oven at a time. When that batch is made the baker will start the process again with a new batch.
There are inefficiencies associated with batch production. The production equipment must be stopped, re-configured, and its output tested, before the next batch can be produced. There are several advantages of batch production; it can reduce initial capital outlay because a single production line can be used to produce several products. As shown in the example, batch production can be useful for small businesses who cannot afford to run continuous production lines. Also, companies can use batch production as a trial run. If a retailer buys a batch of a product and people don't buy them then the producer can cease production without having to sustain huge losses.
