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17) unless output capacity is greater than sales demand, there will always be a Binding constraint.
Sir, could you explain this please? What is binding constraint and why is the statement true?
Thanks a lot!
17) and why is the Idle time cannot be avoided in the other parts of Production that are not bottleneck?
Thanks a lot sir.
A binding constraint is a constraint that is limiting what can be produced (and therefore sold). If they are capable of producing more than they can sell, then they will only produce to meet the demand and there are no constraints.
The bottleneck resource is the one that is limiting production. Therefore the other resources are not causing a limit and have spare time i.e. idle time.
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