Forums › ACCA Forums › ACCA PM Performance Management Forums › Throughput accounting- SA Magazine
- This topic has 6 replies, 3 voices, and was last updated 11 years ago by mohdgadir.
- AuthorPosts
- May 20, 2013 at 12:05 pm #126224
Dear all,
Reference to the 2nd article written in the Student accountant recently talking about throughput accounting , and particularly the example (2) of the three machine X,Y and Z.
My question is how did the writer calculate the “Additional sales” for each of the machines X=100, Z&Y =300 and Z,Y & X=500 ? since I did not understand his calculations.Could any body assist me in that,.
Appreciated your quick response
May 20, 2013 at 5:17 pm #126346Initially the company has overall capacity 500 units per week (the capacity of bottleneck resource Z).
If the company buys Z, capacity of Z becomes 1,050 units per week. But there appears another bottleneck Y with limiting capacity of 600. So overall capacity will be 600 unites per week. So if the company buys Z, additional sales will be only 100 units.If the company buys Z and Y (thus increasing capacity of current bottleneck resource by 550 units), capacity of Z becomes 1,150 units, but there appears new bottleneck X with limiting capacity of 800. The overall capacity will be 800 units, and additional sales with bying new Z and Y will be 300 (current capacity 800 less initial capacity 500).
Hope this helps
May 20, 2013 at 5:50 pm #126350Dear Katerina,
Good day,
Really it helps a lot
Many thanks
May 22, 2013 at 2:25 pm #126689Dear mohdgadir, could you please send me a link or e-mail me on lilias_2005@yahoo.com the article about u were asking before, I just could not find it. Will realy appreciate this! Thx in advance!
May 22, 2013 at 2:34 pm #126692You can find technical articles on F5 here: https://www.accaglobal.com/en/student/acca-qual-student-journey/qual-resource/acca-qualification/f5/technical-articles.html
2nd article is there “Throughput accounting and the theory of constraints – part 2”
May 22, 2013 at 2:51 pm #126696Dear Katerina! Thank you very much for your help. Really appreciate this!
Kind regards, Lilly.May 23, 2013 at 7:30 pm #126931Hi Lilias2005,
I hope you have got the said article in the same link provided by Katerina.
Regards
- AuthorPosts
- You must be logged in to reply to this topic.