Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › limiting factor analysis
- This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
- September 11, 2020 at 8:43 am #584933Noah098Member
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which of the following constraints would necessitate performance of limiting factor analysis:
one of the answers included- “limited demand for Product1 or Product2”
now my only doubt in this is when the demand is limited why do we have to carry out limiting factor analysis? Its only if the production capacity of a production unit, like factory or machine or labour would we have to carry out limiting factor analysis. Why in case of demand for our products?
many thanks!September 11, 2020 at 12:03 pm #584971John MoffatKeymaster
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Because there is no point in producing more than can be sold. Limited demand automatically creates a limit on the number of units that will be produced.
You clearly have not watched my free lectures on linear programming because the example I work through has limited demand (as do most questions in the exam). You really cannot expect me to spend time answering your questions if you are not prepared to spend time watching my lectures – I am certainly not going to type out my lectures here 🙂
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