qn is from progress test 1 2108-19 qn no 5

AAnas7y ago

A company makes product X which passes through three production operations A, B and C. Product X sells for $8 per unit and has a direct materials cost of $3 per unit. Total labour cost for the period is $10,000 and overheads for the same period amount to $14,000. Processing times per unit and maximum processing times available for the three operations are given below. Operations A B C Time per unit 3 mins 11 mins 6 mins Total capacity (mins) 30,000 50,000 80,000 Calculate the throughput ratio for product X. I HAVE GONE THROUGH THE 2 VIDEOS OF THIS LECTURE i would like to know how do to find out the bottle neck scarce that is B from the qn

John MoffatTutor7y ago#1

In operation A they are capable of making 30,000/3 = 10,000 units In operation B they are capable of making 50,000/11 = 4,545 units In operation C they are capable of making 80,000/6 = 13,333 However many units they end up making, al the units must pass through all three operations, and since B is the lowest capacity it is B that is limiting production and is therefore the bottleneck resource.