Lot Size Profitability

It is common knowledge that the larger the lot being produced, the more profitable it will be. That is why your customers will get discounts when they order larger volumes of product — order size justifies price breaks. But exactly how much more profitable is this product if I am producing in batches of 1000 units/tons/kg vs. 500 units/tons/kg? How much does profitability vary with the length of the production run?

Typically, visibility is limited to the overall profitability of a product, but the visibility into profitability depending on the size of the production run has not been there. Maxager 7 can provide a view into true profitability of products at the production lot level.

  • Rank product profitability by order size as well as by production site or line
  • Use lot sizes, profit-per-minute, price, yields, and cost to serve elements to load facilities with the most profitable products to increase cash and ROA
  • Prioritize and possibly combine orders to maximize profitability by reducing setup costs

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