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There are several advantages of batch production ; it can reduce initial capital outlay because a single production line can be used to produce several products.

As shown in the example, batch production can be useful for small businesses who cannot afford to run continuous production lines.

If a retailer buys a batch of a product that does not sell, then the producer can cease production without having to sustain huge losses.

Batch production is also useful for a factory that makes seasonal items, products for which it is difficult to forecast demand, a trial run for production, or products that have a high profit margin.