Explain why a bottleneck limits system output
What will be an ideal response?
A bottleneck, by definition, is a process that has less capacity than all other processes in the system. Just as a chain is as strong as its weakest link, the rest of a production system can produce only as much as the slowest process. The bottleneck limits capacity by serving to slow the rest of the system down. Running all other processes at their maximum capacity will result in inventory buildup in front of the bottleneck.
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A furniture retailer has a beginning-of-year inventory (at cost) of $400,000; ending inventory (at cost) is $270,000 . Yearly purchases are $700,000 and transportation charges equal $5,700
The retailer's merchandise available for sale during the year is _____. a. $570,000 b. $575,700 c. $735,700 d. $1,105,700
A major advantage of a Web site in comparison to a traditional catalog is the ability to have almost unlimited space to present product assortments, displays, and information
Indicate whether the statement is true or false