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Using the theory of constraints, which of the following is the constraint at LuxSo? Wood supply

Using the theory of constraints, which of the following is the constraint at LuxSo? Wood supply

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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LuxSo designs and manufactures wooden chairs and has an annual demand of 5,000 chairs. There is a lack of skilled workers in the industry; there are 46,000 labour hours and 3,000 designers' hours available for next year. A recent flood has also led to a shortage of raw materials with wood supply limited to 25,000 metres. Standard usage per chair Wood 4 metres Labour 9 hours Designer's time 0.5 hours LuxSo is planning its production for next year and the production manager believes that implementing the theory of constraints would help in identifying the optimum production level. Using the theory of constraints, which of the following is the constraint at LuxSo? Wood supply Designers' hours Annual demand Labour hours
Transcribed Image Text:LuxSo designs and manufactures wooden chairs and has an annual demand of 5,000 chairs. There is a lack of skilled workers in the industry; there are 46,000 labour hours and 3,000 designers' hours available for next year. A recent flood has also led to a shortage of raw materials with wood supply limited to 25,000 metres. Standard usage per chair Wood 4 metres Labour 9 hours Designer's time 0.5 hours LuxSo is planning its production for next year and the production manager believes that implementing the theory of constraints would help in identifying the optimum production level. Using the theory of constraints, which of the following is the constraint at LuxSo? Wood supply Designers' hours Annual demand Labour hours
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