A company manufactures product A using four machines. The time taken by each unit of product A in each of the machines is given. Maximum weekly demand for product a is 500 units
Machine 1 2 3 4
Machine capacity (hours) 100 80 40 30
Hours 0.3 0.5 0.2 0.9
Increasing the capacity of which machine will increase the throughput accounting ratio.
If I calculate the capacity of each of the machines by multiplying the hours per unit by the demand then I get 150 250 100 450 which suggests that all of the resources are bottleneck
Should I multiply the hours per unit by 500 or should I divide the capacity by the hours per unit
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4y ago#1You should calculate the maximum that can be produced by each of the machines. Whichever machine gives the lowest is the bottleneck machine.
Why would the capacity of each of the machines not be compared to the demand to determine which machine is the bottleneck.
Also if I multiply the hours per unit for each of the machines by the demand and then the subtract the values from the capacity of each of the machines and then the machine which has the highest shortage of hours to meet demand is the bottleneck. Is this correct
4y ago#3Yes - it will come to the same conclusion :-)
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