Dear tutor, may I know whether reducing the machine time per unit to make the product will increase the TA ratio? (Machine time is the binding constraint)
According to the answer given by bbp revision kits, it does have any effect on TA ratio.
But I though the ratio will be increased as the efficiency is improved in this way.
The answer is wrong. Reducing the time will increase the return per factory hour, which will increase the TA ratio.
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