Consider a capacity constrained process producing a high profit margin product. What will the impacts on...

Consider a capacity constrained process producing a high profit margin product. What will the impacts on revenue and profits be if processing time for the bottleneck resource is reduced by 10% while everything else remains the same?

A)No impact on revenue or profits

B)Higher revenue and profits

C)Lower revenue and profits

D)Higher profits with no change in revenue

Expert Solution

Higher revenue and profits Because here we are reducing bottleneck activity time by 10% so the activity which was taking much time that we reduce. It will directly create an impact on revenue and profit. Efficiency will increase so more revenue will generate.

Amanda K answered 2 years ago

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