Keep it LOW!

“Due to the set-up times, the tendency is to produce in batches that are larger than the order quantities. This supposedly utilizes the equipment more efficiently, reduces set-up costs, and reduces unit product cost. But any production in excess of immediate market demand ends up as finished-goods inventory. The result of producing these large batches in today’s competitive marketplace is poor customer service despite high levels of inventory.”

– M. Michael Umble and Mokshagundam L. Srikanth.

Synchronous Management: Profit-Based Manufacturing for the 21st Century. Spectrum Publishing: 1997.