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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 qnIn 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 = 13,333However 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.
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