What is the difference between batch and flow production?

Batch production involves producing a set of identical products in a series of stages, while flow production involves continuous, uninterrupted production.

Batch production is a method of manufacturing where identical or similar items are produced together for different stages of the production process at the same time. This method is primarily used when the demand for a product is not continuous, but seasonal or periodic. It allows for easy tracking and control of inventory, and it's cost-effective for small scale production. However, it can lead to a high level of stock and work in progress, and it requires careful management of resources and processes to avoid inefficiencies.

On the other hand, flow production, also known as continuous production, is a method of manufacturing where the product flows through the different stages of the production process without interruption. This method is typically used in large scale production where the demand for the product is constant and high. It allows for economies of scale, high rate of output, and lower costs per unit. However, it requires a significant initial capital investment, and it's less flexible as it's difficult to switch to a different type of product without disrupting the entire production process.

IB Business Management Tutor Summary: Batch production makes identical products in stages, useful for seasonal items and allows easy tracking but can lead to stock build-up. Flow production constantly makes products, great for high demand items and reduces costs but needs a lot of money to start and isn't easy to change. Both have their own benefits and challenges depending on the product demand and production scale.