Contract ManufacturerA contract manufacturer produces cosmetics to customer specifications. They operate a single production line that might produce 60 different products in a month. They often do a run for a few hours, change the line and do another run.
ShutdownA solar manufacturer has three factories that vary in cost efficiency. When demand is low, they shutdown the least efficient factory. When demand is high, they start the factory back up. This allows the firm to survive industry downturns that may last months or years.
|Overview: Intermittent Production|
The common practice of using the same production line to produce different types of goods.
The practice of stopping and restarting a production line in response to market conditions.