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“In the short-term the best use should be made of this bottleneck. This may
result in some idle time in non-bottleneck resources, and may result in a
small amount of inventory being held so as not to delay production through
the bottleneck”
I think the above paragraph is the reason why we have chosen the maximum daily demand instead of a minimum daily demand in december 2016 case study question called “Sweet treats bakery”
Please confirm.
P.S sorry i am not posting the whole question here as i think finding it by name and year will be more convenient for you plus for the copyright issues.No – a company will always want to produce to meet maximum demand. The only reason for not doing so is because of production limits i.e. because of the bottleneck.
Ah got it because at that time we did not know the bottleneck process so we have taken the maximum demand.
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