Across different industries, there are many examples of fixed-capacity batch size production, for example:
- Mixing vessels for food preparation
- Aging tanks for beverages
- Kilns for making bricks
- Non-continuous ovens for bakeries
- Furnaces for melting metals
These types of resource affect:
- Process time for a Manufacturing Order
- Costing of resources and fixed and variable overheads
The example below illustrates that, when using a fixed-capacity resource, the total time and cost will be the same regardless of whether the Manufacturing Order quantity is 1,000 KG or 750 KG. The resource time is based on a fixed time basis; therefore, the resource is used for the full fixed time, even though the second cycle is only for 250 KG.
| Production Quantity | Resource | Fixed Time | Resource Cycle Capacity | No. of Cycles | Total Time |
|---|---|---|---|---|---|
| 1,000 KG | Mixing Vessel | 1 Hour | 500 KG | 2 | 2 Hours |
| 750 KG | Mixing Vessel | 1 Hour | 500 KG | 2 | 2 Hours |
| Production Quantity | Resource | Hourly Rate | Fixed Overhead | Variable Overhead | No. of Cycles | Total Time | Total Cost |
|---|---|---|---|---|---|---|---|
| 1,000 KG | Mixing Vessel | 10 | 2 | 2 | 2 | 2 Hours | 28 |
| 750 KG | Mixing Vessel | 10 | 2 | 2 | 2 | 2 Hours | 28 |





