Long/short production runs

A long production run is when many units can be made once the oroduction line is set up. In short production runs, relatively few items can be made for one set-up. Set-ups cost money And the longer the production run the more efficient and the cheaper per unit because set-up costs are spread over many items.

When talking about life cycles, the term ‘long production run’ is likely to mean something slightly different. A long life cycle can mean a long production meaning that the factory can be used for many years and so the cost per unit will be low. A short life cycle means fewer units will be made so unit costs will be higher.