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If the resource basis is Item, increasing the number of items to be processed at an operation increases total hours. For example, doubling the number of items that require grinding doubles the total hours required of a grinder. The relationship between total hours, required hours, and usage quantity for Item basis resources is represented by the following formula. In the Bill of Resources Example, all resources except D1, R1 are item basis resources.
If the resource basis is Lot, increasing the number of items to be processed at an operation does not have an effect on total hours. For example, doubling the number of items that require drying does not double the total hours required of a drying room. The relationship between total hours and resource units for Lot basis resources is represented by the following formula. In the Bill of Resources Example, D1, R1 is a lot basis resource.
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