why minimum quantity required in third party manufacturing?

 how much Quantity i have to manufactured in third party manufacturing ?

What is the minimum quantity that can be produced in third party manufacturing is depend on various factor. mainly its depends on cost of composition and terms of manufacturing plant that you have select for third party manufacturing of your composition. 

Batch size depends on many factor like cost of composition, How many batches are taken in manufacturing process, Availability of raw material, Packing Specification that you are demanding for packing of your brand, how early you want to receive your product

cost wise

The cost of a composition has an important role in deciding how much of an item's minimum quantity will be manufactured. Because it is necessary to have a minimum volume of any composition to meet the cost of the manufacturing process.

If any composition is less costly for third party manufacturing Then you have to give more quantity to produce in third party manufacturing , as compared to expensive composition.

Example :-

Aceclofenac with Paracetamol tablets have low cost comparison to Amoxicillin with Potassium Clavulanate tablets and Amoxicillin and Potassium Clavulanate is less costly comparison to Voriconazole tablet. in this case any third party manufacturer will produce more quantity of Aceclofenac with Paracetamol compared to Amoxicillin and Potassium Clavulanate and will manufactured less quantity of Voriconazole Tablets compared to Amoxicillin and Potassium Clavulanate. 

Third party manufacturer plant wise

Quantity in third party manufacturing also depend on capacity plant. All producers have a certain installed capacity to produce any composition in third party manufacturing. Based on this production capacity, they determine the lowest production quantity of a any composition.

Example

A third party manufacturer have a fully automatic syrup manufacturing machine He shall not produce a batch less than the decided minimum quantity. Because if he take a batch for manufacturing less than decided quantity it will raise the cost of product. It is a very common known fact that each automated machine always incurs a fixed cost to start and stop for manufacturing. Even when the automatic machine is not in production, there is a minimum cost of maintenance. 

On other hand a manufacturer have a manual syrup filling manufacturing machine He can give you the lowest quantity you want.

 

Costing of change of packing material on machine

when manufacturer run a batch on machine for packing and he have to pack different brand on same composition, in this situation when machine man change the packing material from one brand to another for packing it take some time. There is also some waste in setting the packing material on machine. To keep cost of product minimum due to change part , costing department decide the minimum quantity for process a single brand batch.

How early you want delivery of your brand 

if you want to get your brand earliest then you have to give order of full batch to process. Because as early discussed manufacturer have to take minimum batch for processing. The manufacturer does not begin the production process until the minimum quantity has been collected for manufacture.  so if you give him order of full batch to process then he will not wait for collection of other order to complete minimum quantity and you will get your product on time.