Explanation
According to the Visualize and Limit WIP, Reduce Batch Sizes, and Manage Queue Lengths article on the Scaled Agile Framework website, batch size optimization happens over time as teams figure out the balance between holding cost and transaction cost. The article states that "To improve the economics of handling smaller batches-and thus increase throughput-teams must focus on reducing the transaction costs of any batch. This is a continuous improvement activity that happens over time as teams figure out the balance between holding cost and transaction cost." Therefore, the correct answer is A, batch size optimization happens over time as teams figure out the balance between holding cost and transaction cost. The other options are not accurate, as they are not the statements that are true about optimizing batch sizes for newly-formed SAFe teams in a program. Batch size is not optimized immediately by looking at transaction and holding costs (B), as it takes time for teams to understand the nature of the work, identify bottlenecks, and find the optimal batch size that minimizes both costs. Batch size is not already optimized if there is continuous flow , as optimization involves finding the right balance between batch size and costs, even within a continuous flow environment. Batch size is not optimized when transaction and holding costs seldom change (D), as holding costs and transaction costs can change over time due to various factors such as team size, workload, and external dependencies.