Production lead-time performance in flexible manufacturing systems is influenced by several factors which include: machine groupings, demand rates, machine processing rates, product batching, material handling system capacity, and so on. Hence, control of lead-time performance can be affected through the manipulation of one or more of these variables. In this article, we investigate the potential of batch sizing as a control variable for lead-time performance through the use of a queueing network model. We establish a functional relationship between the two variables, and incorporate the relationship in an optimization model to determine the optimal batch size(s) which minimizes the sum of annual work-in-process inventory and final inventory costs. The nonlinear batch sizing problem which results is solved by discrete optimization via marginal analysis. Results show that batch sizing can be a cheap and effective variable for controlling flexible manufacturing system throughput.
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