economic lot size


Also found in: Acronyms.

economic lot size

[‚ek·ə′näm·ik ′lät ‚sīz]
(industrial engineering)
The number of units of a product or item to be manufactured at each setup or purchased on each order so as to minimize the cost of purchasing or setup, and the cost of holding the average inventory over a given period, usually annual. Also known as project life.
References in periodicals archive ?
Quality improvement and setup reduction in the joint economic lot size model.
[1] Burwell T.H., Dave D.S., Fitzpatrick K.E., Roy M.R., 1997, Economic lot size model for price-dependent demand under quantity and freight discounts, International Journal of Production Economics, 48(2), 141-155.
Manne, A.S., "Programming of economic lot sizes", Management Science, Vol.
In other cases, flexibility means that the equipment will run economic lot sizes of one product.
He said a 'centralized procurement system is appropriate and consistent with the objective of the government to adopt economies of scale in its operations by purchasing from legally, technically and financially capable sources in economic lot sizes, by observing cost-efficient specifications and by making prompt payment.'
Often the rate of deterioration is low for many items and there is scarcely any need to consider the deterioration in the determination of economic lot sizes. However, there are many products in the real world that are subject to a model under the conditions of permissible delay in payments.
With the trend to JIT and trying to get down to economic lot sizes of one, having to batch parts and move them from one operation to another certainly creates longer lead times.