Batch process is preferred over continuous process, when the

ANS:B - sales demand of product is not steady.

When the sales demand of a product is not steady, it means that the demand for the product fluctuates over time rather than remaining constant. This fluctuation can occur due to various factors such as seasonality, changing consumer preferences, economic conditions, market trends, or competitive pressures. In such situations, batch processes offer advantages over continuous processes:

1. Flexibility: Batch processes allow for the production of different products in smaller quantities. This flexibility enables manufacturers to adjust their production schedules and quantities based on changing demand patterns. They can easily switch between different product formulations or variants to meet varying customer requirements.
2. Reduced Inventory: Steady demand allows continuous processes to operate efficiently with minimal inventory buildup. However, when demand fluctuates, maintaining high levels of inventory to meet peak demand can be costly and risky. Batch processes allow manufacturers to produce smaller batches based on immediate demand, reducing the need for excessive inventory stockpiling.
3. Cost Efficiency: In situations of fluctuating demand, it may not be economically viable to run continuous processes at full capacity all the time. Batch processes offer cost efficiencies by allowing manufacturers to scale production up or down as needed. They can adjust production levels to match demand fluctuations, minimizing excess capacity and associated costs.
4. Customer Responsiveness: Batch processes enable manufacturers to respond quickly to changes in customer demand or preferences. They can rapidly introduce new products or modify existing ones to capitalize on emerging market trends or customer feedback. This agility in product development and customization enhances customer satisfaction and competitiveness in dynamic markets.

Overall, when sales demand for a product is not steady, batch processes provide the adaptability and responsiveness that continuous processes may lack. They offer manufacturers the flexibility to optimize production levels, manage inventory effectively, and meet changing customer needs, ultimately driving business success in fluctuating market environments.