Get to know the vital terms of Logistics and Supply Chain Management.
A Job Lot refers to a lot of products made in one go, although it is normal to refer to the number of units that are made under special order or specification. It is the usual form of production associated with manufacturing and hence is usual when producing products where demand may be subject to specific customer requirements. In this instance, job lots can be any size and generally are produced for a customer’s particular requirement rather than a quantity that is going to be reproduced in large quantities.
Job lots are usually produced as a direct consequence of an order placed by a customer. In this regard, items in the lot are normally customized in the form, design, quantity, or specifications among others.
The job lot involves manufacturing an equal number of goods in one run or batch. This allows companies to meet all orders with less waste.
Although the size of a job lot might be small or very wide-ranging, depending upon the peculiar request, flexibility in the size of the lot makes it suitable for dealing with small custom orders and big, specialized runs of production.
Through the production of goods in one batch, manufacturers will be able to put most of the time into proper production and cut the cost of setting the equipment, thus making an efficient way to execute custom orders.
Since the job lots are produced according to specific demand, then there is less overproduction that brings out lesser excess inventory and limited waste.
This type of production technique is most appropriate for industries that need special products or for those industries that need to produce very few quantities of specific units.
The term job lot means flexible, efficient manufacturing of products based upon specific orders or custom requirements. This kind of batch production approach helps in coping with the demands of customers without referring to actual mass production, thus popular among those industries that require customization and efficiency.