Repetitive manufacturing is the ongoing production of the same product for an extended period of time. The product is typically assembled on a production line, where a series of tasks are completed in the same sequence by employees and/or robots. The quantity produced does not have a terminal value, after which production stops. Instead, a certain quantity is targeted for production in each successive period. This situation most commonly arises when a business has a steady stream of orders that does not vary over time. Some variation can be used in a repetitive manufacturing process, so that different members of a product family may roll off the same production line.
The materials management for repetitive manufacturing can involve components being staged adjacent to the production line on a regular basis, typically as existing component quantities are drawn down. Production routings tend to be relatively simply, so that raw materials are converted all the way into finished goods; there is no break, during which partially-completed goods are sent to an interim storage area.
Process costing is used to account for goods produced in this manner. Backflushing may be used in order to minimize the number of accounting transactions associated with ongoing production activities.