@@jotuffillacca Key steps in limiting factor analysis include;? 1. Identify the limiting factor 2. Calculating contri per unit 3. Calculating contri per unit of limiting factor 4. Ranking the products 5. Estimating the total demand of the products What is the correct order of these steps? Can you please help.
Hi, for the Home Electrics Co example at about 14 mins 20, you say the answer with 1 limiting factors is 500 and 333. I get the workings, but wondered then is "demand" not considered a limiting factor too? So wouldn't that be 2 limiting factors - 1 being materials available and 2 being the demand of each product?
The limiting factors refer to the resource constraints only so materials is one LF … demand is not considered when saying wether it’s a LF… ofcourse they can be a binding constraint when working out the optimal plan.
Hello, great video thank you!! In your question where demand for B is 500 answer T is 600 in the first quarter. But the supply is 2000kg per month. Wouldn’t that mean supply for the quarter is 6000kg and you can make full amount of units for both B and T?.
That’s the point demand might be 600 but we can’t satisfy demand as supply of materials is limited. So we rank then allocate as I have shown in the video. And in order to supply all units you would need 2800 kg that’s 500 x 2 for B and 600 x 3 for T.
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@@jotuffillacca Key steps in limiting factor analysis include;?
1. Identify the limiting factor
2. Calculating contri per unit
3. Calculating contri per unit of limiting factor
4. Ranking the products
5. Estimating the total demand of the products
What is the correct order of these steps?
Can you please help.
@@socialsaga4615 5,1,2,3,4
Hi, for the Home Electrics Co example at about 14 mins 20, you say the answer with 1 limiting factors is 500 and 333. I get the workings, but wondered then is "demand" not considered a limiting factor too? So wouldn't that be 2 limiting factors - 1 being materials available and 2 being the demand of each product?
The limiting factors refer to the resource constraints only so materials is one LF … demand is not considered when saying wether it’s a LF… ofcourse they can be a binding constraint when working out the optimal plan.
@@jotuffillacca great thank you :)
How does Product D have a slack value, the demand is more than the optimum production units. We won't be able to fulfil the extra 50 units right?
Yes unfulfilled demand is a slack value
Hello, great video thank you!! In your question where demand for B is 500 answer T is 600 in the first quarter. But the supply is 2000kg per month. Wouldn’t that mean supply for the quarter is 6000kg and you can make full amount of units for both B and T?.
That’s the point demand might be 600 but we can’t satisfy demand as supply of materials is limited. So we rank then allocate as I have shown in the video. And in order to supply all units you would need 2800 kg that’s 500 x 2 for B and 600 x 3 for T.