Firms are classified under three categories by Woodward (1965):

Small batch and unit production: Some firms produce customized small orders of a specific customer group. Production of these goods requires human craft and it cannot be mechanized. Advanced manufacturing technologies such as CAM (computer aided manufacturing) are sometimes used. Shipbuilders, defense contractors and aerospace companies are the typical examples of these firms.

2. Large batch and mass production: Manufacturing process is based on job simplification and standardization. It progresses through fulfillment of predefined and sequential pieces of tasks. Automobile, computer and white goods manufacturers use mass production techniques.
3. Continuous process production: There is no direct human involvement to the manufacturing process. All steps of the production are mechanized and they consist of numerous chemical steps. There is no start or stop, manufacturing proceeds in a cyclical manner. Chemical plants, beverage producers, oil refineries, pharmaceuticals and nuclear plants are the examples of the organizations having continuous process production.

The correct answer is Choice B.