When Multiple Products Share a Constrained Resource, the Constrained Resource

question 148

Multiple Choice

When multiple products share a constrained resource, the constrained resource should be allocated first to the product with

• A)the lowest contribution margin.
• B)the lowest contribution margin per unit.
• C)the highest contribution margin per constrained resource.
• D)the highest contribution margin.

Analyze the trade-offs between supply chain efficiency and responsiveness.

Grasp the components of total logistics cost and how they relate to customer service.

Understand the goals of inventory and transportation cost minimization within the supply chain.

Learn about the use and benefits of vendor-managed inventory systems and quick response systems.

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Definitions:

Classical Approach

A traditional method or theory in a specific discipline, often emphasizing foundational or universally recognized principles.

Motivation

The psychological processes that arouse and direct goal-directed behavior.

Autonomy

The ability to make decisions independently, often implying a sense of freedom and self-direction.

Laissez-Faire

A leadership or management style characterized by minimal supervision, where individuals have freedom to make decisions and take actions.