How Many Parts to Make at Once

Reprinted from Factory, The Magazine of Management, Volume 10, Number 2, February 1913, pp. 135–136, 152. Interest on capital tied up in wages, material and overhead sets a maximum limit to the quantity of parts which can be profitably manufactured at one time; “set-up” costs on the job fix the minimum. Experience has shown one manager a way to determine the economical size of lots.