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Additional information: The sales prices of 1 production roll of the different types of cable are as follows: Cable X Cable Y Cable z RM
Additional information: The sales prices of 1 production roll of the different types of cable are as follows: Cable X Cable Y Cable z RM RM RM Sales price per production roll 12,186 10,216 15,738 The company is contractually obliged to supply 1,500 metres of each type of cable to a key customer in the forthcoming quarter. This contract cannot be broken despite the shortage of Rhondium and must be given top priority ahead of other sales orders. The maximum anticipated demand for each type of cable in the forthcoming quarter (including the 1,500 metres of each type of cable detailed in the previous note) is as follows: Cable X 6,600 metres Cable Y 3,500 metres Cable z 4,500 metres Customer demand Required: a) Briefly outline the meaning of the term "limiting factor" and explain how an organisation constrained by "limiting factors" should determine optimal production levels. b) Compute the optimal production levels of each type of cable for the upcoming quarter and the closing quantity of Rhond' remaining in stock (if any) at the end of the quarter. [Total: 25 MARKS Additional information: The sales prices of 1 production roll of the different types of cable are as follows: Cable X Cable Y Cable z RM RM RM Sales price per production roll 12,186 10,216 15,738 The company is contractually obliged to supply 1,500 metres of each type of cable to a key customer in the forthcoming quarter. This contract cannot be broken despite the shortage of Rhondium and must be given top priority ahead of other sales orders. The maximum anticipated demand for each type of cable in the forthcoming quarter (including the 1,500 metres of each type of cable detailed in the previous note) is as follows: Cable X 6,600 metres Cable Y 3,500 metres Cable z 4,500 metres Customer demand Required: a) Briefly outline the meaning of the term "limiting factor" and explain how an organisation constrained by "limiting factors" should determine optimal production levels. b) Compute the optimal production levels of each type of cable for the upcoming quarter and the closing quantity of Rhond' remaining in stock (if any) at the end of the quarter. [Total: 25 MARKS
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