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Dear Sir, for the question where the ranking of products will be required based on limiting factor(s) would it be mentioned whether to use throughput contribution per unit or contribution per unit of limiting factor to rank products? If not, how would I know which technique to use? Many thanks
If the question explicitly mentions terms like “throughput accounting” or “limiting factor analysis,” it is a clear indication of which approach to use. However, if the question does not specify, you can look for certain clues within the question to determine the appropriate approach.
For throughput accounting, you can look for phrases like “maximising profit,” “optimal production plan,” or “bottleneck activity.” These indicate a focus on maximising throughput and identifying the bottleneck resource.
On the other hand, for limiting factor analysis, you can look for phrases like “scarcity of resources,” “maximising contribution,” or “rank products.” These indicate a focus on optimising the utilisation of limited resources.
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