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Hi john sir..plz guid me about the following.
One of the process of the company has only capacity of 8 hours a day..500 units can be produced in 1 hour..expected production in a day is 3600 units..sales price per unit is $100..material price per unit is $20..find throughput ratio..
John sir ..i can calculate the TAR ratio..issue that i want to discus is how this process is a bottleneck process..as we use bottlenck hours while calculatng ratio..To produce 3600 units we only need 7.2 hours whereas available hours are 8 in a day..so there is excess of hours rather than shortage..
I agree – on the information as you have typed it, then this process is not a bottleneck process.
However, are there other processes? Did the question ask you to identify the bottleneck process? Ate there other products other than the one you gave details of?
For throughput accounting there does not always have to be a bottleneck process 🙂
Thnx john sir..i got the issue..sorry cor late thnx..internet access isue..
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