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Olu Inc. makes three different products, Lax, Cob and Exe. Department B has been identified as the bottleneck. In this department, the three products use
Olu Inc. makes three different products, Lax, Cob and Exe. Department B has been identified as the bottleneck. In this department, the three products use the same two machines which can only be operated eight hours a day and five days a week. Further information are given below:
tableProduct Lax,Product Cod,Product ExetableEstimated monthlyproduction unitsSelling price per unit, What is the throughput contribution for one unit of product Lax What is the throughput per factory hour for one unit of product Cod What is the cost per factory hour? What is the throughput accounting ratio for product Exe Comment on other factors Olu Inc. could consider to maximise their operating profit given the bottleneck resource.
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