Simulating the Effect of Production Lot Sizes on Material and Energy Efficiency

In the past, factory improvement measures have focused on cost optimization and agility increases, while neglecting the potential effects on material and energy efficiency. Production lot sizes, for example, have been determined solely with respect to cost and logistical performance. This paper presents a method to simulate material and energy efficiency in the factory as a function of lot size. Using the example of a plastics manufacturer, the simulation results reveal a gap between the lean optimum lot size and the material efficiency optimum.