Question
In a 2-3 page paper, discuss the theory of constraints. In your discussion, please respond to the following questions: Using your research and the text
In a 2-3 page paper, discuss the theory of constraints. In your discussion, please respond to the following questions:
- Using your research and the text explain fully the theory of constraints. Explain its purposes and how it is relevant in decision making. How is this theory relevant to the case
- Using the data below, respond to part a and b; incorporate your answers in the report and explain your conclusions based on the information provided below and your research on the theory of constraints.
- Your paper will be 2-3 pages in length with at least 2 independent sources
The constraint at Trump Inc. is an expensive milling machine. The three products listed below use this constrained resource.
| 9P |
| 8L |
| 7N | ||||||
Selling price per unit | $ | 404.58 |
|
| $ | 478.74 |
|
| $ | 358.44 |
|
Variable cost per unit | $ | 308.88 |
|
| $ | 371.30 |
|
| $ | 285.36 |
|
Time on the constraint (minutes) |
| 6.60 |
|
|
| 7.90 |
|
|
| 5.80 |
|
In your written report respond to the following: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. Show your work! b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?
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