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Hi
When deciding on the optimal production mix, do you use the return/limiting factor or the throughput accounting ratio/limiting factor?
I found the latter used in a past question and obviously changed the order of the products since I had used return/limiting factor.
Thanks.
If it is throughput accounting, then the limiting factor is always machine hours, and we always use the return per factory hour.
(We never divide the throughput accounting ratio by anything – that would be meaningless)
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