GlossaryEN1 min readUpdated: Jun 16, 2026
Batch Size Optimization
Logistics planners and procurement teams use batch size optimization to find the ideal quantity for sourcing, producing, or shipping goods – minimizing the combined costs of ordering or setup, inventory holding, and transportation.
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Source: https://www.sciencedirect.com/topics/engineering/batch-size-optimization
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Logistics concept
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Definition & Explanation
Logistics planners and procurement teams use batch size optimization to find the ideal quantity for sourcing, producing, or shipping goods – minimizing the combined costs of ordering or setup, inventory holding, and transportation. Oversized batches tie up working capital and storage space; undersized batches trigger frequent orders or costly production changeovers. Additional variables shape the calculation in practice: supplier minimum order quantities, available transport capacity, packaging units, and demand volatility. The approach is closely related to the Economic Order Quantity (EOQ) model, but operational use extends well beyond that formula – particularly when multiple cost drivers and capacity constraints must be balanced simultaneously.
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