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Sir, what is the meaning of binding constraint?
and may I know how to solve question 3.10?
Thank you.
A binding constraint is whatever is limiting production.
With regard to question 3.10 you will have to say which part of the answer is giving you a problem, because it is a pretty standard throughput accounting question.
Have you watched my free lectures on throughput accounting?
(The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well)But it is just like the example in my lecture!
You calculate the throughput per unit.
You divide by the machine hours per unit to get the return per factory hour.
You produce in order of returns per factory hour limited to the maximum demand, until you have used all the hours available.
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