Assume you are the management accountant for the Foleo Group.You have been called into a meeting with the Board of Directors to discuss the problems Foleo Retailing NZ is experiencing in meeting customer demand for theSliFone.You have been asked to undertake an analysis of the business processes involved in producing and despatching Foleo's phones to the NZ market, with the view to streamlining procedures.As a result of your initial investigations, you have itemised the below list of processes involved in supplying the NZ operation, along with the maximum capacity each process can deliver per month.

Assume you are the management accountant for the Foleo Group. You have been called into a meeting with the Board of Directors to discuss the problems Foleo Retailing N2 is experiencing in meeting customer demand for the SiiFone. You have been asked to undertake an analysis of the business processes involved in producing and despatching Foleo's phones to the NZ market, with the view to streamlining procedures. As a result of your initial investigations, you have itemised the below list of processes involved in supplying the NZ operation, along with the maximum capacity each process can deliver per month. _ Maximum Output of Business Process Process per month lb) Bottleneck Orders for phones processed by Sydney sales from NZ sales oice 280 orders Purchasing raw materials and components for sales order 140 orders inspecting raw materials and components for sales order 98 orders Production time 185 orders Quality assurance activities 200 orders packag..gpho... Moving orders to warehouse for despatch Shipping orders to NZ sales depot Distribution of orders to kiosks _ El (a) Explain the Theory of Constraints to the Board of Directors. According to this theory, what is the maximum number of SiiFone orders that Foleo can deliver to the NZ kiosks per month? Why? {1 mark)