TQM can reduce batch sizes by

Total Quality Management (TQM) is centered around enhancing operations and quality, which can fundamentally impact how batch sizes are determined. By lowering fixed costs associated with batch-size calculations, organizations can move towards smaller batch sizes without the burden of significant cost penalties. When fixed costs are reduced, it becomes more feasible to produce smaller quantities, as the cost per unit becomes less sensitive to the size of the batch.

This flexibility allows businesses to adopt a Just-In-Time (JIT) approach, reducing inventory levels and minimizing waste, all key principles of TQM. As a result, organizations can respond more swiftly to customer demands and fluctuations in market conditions, derived from their commitment to quality and efficiency.

The other options involve concepts that may relate to TQM but do not directly facilitate the reduction of batch sizes in the same clear manner. For instance, reducing lead time typically enables faster production and delivery but does not inherently address the cost structure related to batch size. Utilizing statistical analysis and destructive testing focuses on quality control processes rather than directly impacting batch size. Lastly, increasing per-order costs contradicts the goal of achieving more economical and efficient production methods aligned with TQM principles.