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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput acounting
Sir please explain this sentence, that how it is correct.
Unless output capACIty is greater than sales demand, there is always be a bottleneck constraint.
If the capacity (the number they can make) is less than demand then they will not be able to meet demand – so there is a bottleneck.
If capacity is more than the demand then they can meet demand and so there is no bottleneck.
Thanks a lot.
You are welcome 🙂