Question
A plant has one binding bottleneck: a heat-treating oven
(hours limited). Product P and Q both consume oven time; material is the only truly variable cost in the short run. P has higher gross margin per unit, but lower throughput per bottleneck hour than Q. Demand for both exceeds capacity; fixed costs are committed. Which production plan maximizes short-run profit?Solution
In throughput accounting with a single binding bottleneck, rank products by throughput per bottleneck hour (sales – truly variable costs per hour). With excess demand and fixed costs committed, prioritize Q if it yields higher throughput per constrained hour.
Which of the following diagrams best depicts the relationship between Tubelight, Mobile and Gadget.
Which of the following diagrams best depicts the relationship between Fan, Laptop and Gadget.
In the given figure, how many pencils are black?
Select the missing number from the given responses.
Which one of the following Venn diagrams represents the best relationship between Snake, Lizard, and Reptiles?