ABSTRACT
Most everything manufactured is produced, procured, and transported in lots. A lot is a batch of something; in fact, the terms lot and batch are interchangeable. The smallest lot-size alternative is one unit, for example, pick up one lobster from the market, make one pizza from scratch, or form one metal part on a press. The alternative is multiple-unit lots-pick up 10 lobsters at once, make 10 pizzas, or shape 1,000 parts one after another. Which alternative is best depends on many factors including time, cost, and demand. Determining the right lot size is called lot sizing.
