U-curve optimisation

The u-curve is a continuous function without major steps. This allows a business to adapt the size of work packages (batches) whilst measuring the total cost and keep the organisation as constant as possible.

The alternative, that unfortunately many managers go for, would be to adapt the organisation to decrease costs. But changing the organisation is much harder since people have feelings, social skills, demands and much more. Thus, it is much easier to change work size as compared to organisational change.

Also, as the u-curve is flat in the middle it is relatively forgiving for measurement errors. Therefore high precision is not needed to find the optimal work size.

	Transaction cost	Holding cost	Total cost
1	50	2	52
2	45	4	49
3	40	6	46
4	36	8	44
5	32	10	42
6	28	12	40
7	25	14	39
8	22	16	38
9	19	18	37
10	17	20	37
11	15	22	37
12	13	24	37
13	11	26	37
14	10	28	38
15	9	30	39
16	8	32	40
17	8	34	42
18	7	36	43
19	7	38	45
20	6	40	46
21	6	42	48
22	6	44	50
23	5	46	51
24	5	48	53
25	5	50	55

	Transaction cost	Holding cost	Total cost
1	50	2	52
2	45	4	49
3	40	6	46
4	36	8	44
5	32	10	42
6	28	12	40
7	25	14	39
8	22	16	38
9	19	18	37
10	17	20	37
11	15	22	37
12	13	24	37
13	11	26	37
14	10	28	38
15	9	30	39
16	8	32	40
17	8	34	42
18	7	36	43
19	7	38	45
20	6	40	46
21	6	42	48
22	6	44	50
23	5	46	51
24	5	48	53
25	5	50	55

	Transaction cost	Holding cost	Total cost
1	50	2	52
2	45	4	49
3	40	6	46
4	36	8	44
5	32	10	42
6	28	12	40
7	25	14	39
8	22	16	38
9	19	18	37
10	17	20	37
11	15	22	37
12	13	24	37
13	11	26	37
14	10	28	38
15	9	30	39
16	8	32	40
17	8	34	42
18	7	36	43
19	7	38	45
20	6	40	46
21	6	42	48
22	6	44	50
23	5	46	51
24	5	48	53
25	5	50	55

	Transaction cost	Holding cost	Total cost
1	50	2	52
2	45	4	49
3	40	6	46
4	36	8	44
5	32	10	42
6	28	12	40
7	25	14	39
8	22	16	38
9	19	18	37
10	17	20	37
11	15	22	37
12	13	24	37
13	11	26	37
14	10	28	38
15	9	30	39
16	8	32	40
17	8	34	42
18	7	36	43
19	7	38	45
20	6	40	46
21	6	42	48
22	6	44	50
23	5	46	51
24	5	48	53
25	5	50	55