Question

As an employee, write an internal memo to your manager addressing the following:

For the Supermarket business, identify the factor that you believe is most likely to limit potential output capacity.

Suggest several ways (other than raising prices) the business can maximize the contribution margin per unit of this limiting resource. (Hint: These businesses often do implement the types of strategies you are likely to suggest. Thus, your solution to this case may explain basic characteristics of businesses that you personally have observed.)

PLEASE BE ORIGINAL WITH YOUR ANSWER....DONT GO OFF SOMEONE ELSES WORK!!!

Answer 1

Answer :-

• All organizations are gone through a procedure which may include diverse exercises.
• These procedures rely upon the sort of systematic an assembling set-up has altogether different process then an administration industry.
• We realize that all business can take into account restricted units and these yield units rely upon numerous components.
• Each business has stream of different exercises to accomplish yield.
• At the point when every movement is considers in detail, we can discover imperatives of every action and action which has most reduced limit is named as constraining limit.
• For instance: An assembling unit producing autos includes 10 exercises to finish a vehicle. It is discovered that out of 10 exercises, 9 exercises include handling/gathering 2 autos every hour except tenth movement (say – paint shop) can paint just 1 vehicle in 60 minutes. Here paint shop is constraining variable and yield can be restricted to 1 vehicle for every hour regardless of every other movement have limit of 2 autos every hour. While computing benefits or edges, typically this factor turns out to be more critical as it will constrain the yield. This constraining element might be diverse businesses/administrations relying upon procedures included.

Supermarket business :-

In grocery stores client footfalls might be the restricting component and different variables might be space to oblige expansive number of clients, charging officials and so forth.