decision making techniques limiting factor analysis Flashcards
1
Q
give 5 examples of limiting factors
A
- limited demand
- skilled labour
- material
- machine capacity
- limited finance
2
Q
what is a limiting factor
A
any factor that is in scarce supply and that stops the organization from expanding its activities further
3
Q
what is the steps of limiting factor analysis
A
- identify the scarce resource
- calculate the contribution per unit for each product
- calculate the contribution per unit of the scarce resource for each product
- rank the products in order of the contribution per unit of the scarce resource
- allocate resources using this ranking
4
Q
what is linear programming
A
5
Q
what is linear programming used for?
A
6
Q
what is the method used for linear programming
A
