How do you identify limits in the production process and mitigate its effects to your production capacity?
How do you identify limits in the production process and mitigate its effects to your production capacity?
In production, a bottleneck is a resource or operation that limits output, essentially determining the capacity of the entire process. Even marginal changes in the capacity of a bottleneck will change the capacity of the process. This case teaches students about the economics of bottlenecks, and how bottlenecks can affect a firm's management decisions. Students also learn a method, using three inputs, that facilitates bottleneck analysis.
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