Throughput and limiting factor — OpenTuition Forums

CClaire9y ago

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.

John MoffatTutor9y ago#1

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)

CClaire9y ago#2

thanks for this. I understand.