Explain one advantage of batch production for ABC.

• A. Lower costs per unit
• B. High throughput
• C. Requires less setup time
• D. Flexibility to handle different types of circuit boards

Answer: (D)

Batch production groups work into batches that move through the same process before switching to a different product. The main advantage here is the ability to handle different types of circuit boards in separate runs. By switching setups between batches, ABC can produce a variety of board designs without running every item as a unique, custom job. This flexibility is especially valuable when demand or orders vary, allowing the company to respond to different product specifications while still keeping some standard tooling and processes in use.

While batch production can offer versatility, it doesn’t typically deliver the lowest possible cost per unit or the highest throughput—that’s more associated with continuous or flow production. Setups are needed when changing batches, so throughput isn’t maximized in the same way as in mass production; the strength of batch production lies in its adaptability to different products.