Chapter 26, Problem 3CP

To determine

Key Constraints of Production:

The Key constraints of the production are those factors of production which are available in limited supply as compared to their requirement based on the actual demand of the produces.

In such case, the constraining factor must be utilized in such efficient way that the profits gets maximized. For scheduling such profitable production, the product which give highest contribution per key factor must be produced first to the highest level of demand and then second highest profitable product shall be taken up for production.

Requirement1:

The Determination of Constraining factor of production.

To determine

Requirement 2:

The Product line to be emphasized to be determined.