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Throughput Accounting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput Accounting

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • August 18, 2022 at 3:45 pm #663378
    shaggy
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Can you explain how to work out the optimal production plan in Question 2 of the Section B question called ‘Sweets Treats Bakery’. I found this question in Kaplan Exam Kit. I want to know how to get the answer for that question.

    August 19, 2022 at 11:27 am #663491
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54702
    • ☆☆☆☆☆

    Given that the bottleneck process is mixing, the products are ranked according to their throughput returns per factory minute which are Brownies: $2.50; Muffins: $2.34; Cupcakes: $2.91.

    Therefore they should first produce to fulfil the minimum demand, which because they can only produce in batches means producing 1 batch of each of the three products. The remaining time mixing should be spent producing up to the maximum demand in the order of the throughput returns.

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