Case Study: Small Lots vs Large Lots

Small Lots: This is Merida. She is the owner of a small confectionary shop. She specializes in designing wedding sweets that match the bride and groom's wedding colors. She makes her sweets in very small lots. A small quantity of products is a small lot. She sticks to her small lots because her products are very unique. Each bride and groom has their own unique likes and dislikes. Merida creates a unique sweet for each wedding, so she has a small lot size of one for her sweets. All the couples that have used Merida for their wedding sweets have been very satisfied. This is all because Merida uses very small lots to fulfill her orders.

Large Lots: On the other hand, the fictional business Confectionary Supplies, where Merida buys her chocolate marzipan and other sweet supplies, makes its products in large lots. A large lot is a large quantity of products. For example, when Confectionary Supplies makes its chocolate marzipan, it makes it in a large lot of $3,000$ pounds. Confectionary Supplies sells its chocolate marzipan in half pound packages. So$,3,000$ pounds gives Confectionary Supplies $6,000$ salable products. Confectionary Supplies has satisfied customers like Merida because it makes its products in large lots.

Answer the question:

What do you think are the advantages and disadvantages of small and large lots?