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limiting factor

nabuttnabutt Feels At HomeRegistered Posts: 86
if no. of limited labour hrs are given, the no. of total product made are given and no. of labour hrs in each production department per hr is also given how to find that limiting factor is needed or nt e-g

no. of hrs per units in mixing dep are 0.20
total units made are 2100
no. hrs available 160

how we find limiting faactor

Comments

  • SandyHoodSandyHood Font Of All Knowledge Registered, Moderator Posts: 2,034
    in this case the 160 labour hours will limit what can be produced
    So labour hours should be allocated to the product that generates the best contribution from the labour hours it requires and any left over to the second best etc
    Sandy
    [email protected]
    www.sandyhood.com
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