Hi Sir,
I have a problem when we doing Step 2 of Optimum production Plan,
- this is Allocate resources to arrive at Optimum Production Plan.;
There is:
Procedure Number Hours per procedure Total hours Throughput p. hour Total 504 5
B 800 1 800 2654,40 2,123,520.007
A 600 0.75 450 2,612.53 1,175,638.50
C *504 1.25 630 2,559.52 1,612,497.60
------ ------------------
1,880 4,911,656.1
Question: I don't understand the figure *504 at Procedure C) how they arrived to it? Also in the question layout there is mention annual demand only figure 600; 800, but not *504?
Question: I also don't understand whether the Title "Number" was related to Demand or Optimum Number?So, with what title "Number" in the Optimum Product calculation was related to?
Thank you very much.
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Question 17 Thin Co/ BPP Kit
10y ago#1'Number' is the number of procedures.
Using throughput accounting they will do B first (up to the maximum demand), then do A (up to the maximum demand), and then do C.
Because the surgeon's hours are limited to a total of 1,880 hours, there are only enough hours remaining to do 504 procedures of C.
Have you watched our free lectures on throughput accounting?
Our lectures are a complete course for Paper F9 and cover everything needed to pass the exam well.
Thank you Sir. Just watching your Free video about ThroughPut Accounting.
10y ago#3You are welcome and I hope you find the lecture useful.
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