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Unformatted text preview: t this month. Assume the company
follows the plan we have proposed. Up to
how much should Colonial Heritage be willing
to pay above the usual price to obtain more
a. $40 per board foot
b. $25 per board foot
c. $20 per board foot
LO 3 Managing Constraints
The theory of constraints (TOC) maintains that effectively
managing a constraint is important to the financial success
of an organization.
Finding ways to
units through a
bottleneck At the bottleneck itself:
• Improve the process
• Add overtime or another shift
• Hire new workers or acquire
• Subcontract production
• Reduce amount of defective
• Add workers transferred from
non-bottleneck departments LO 3 Next week: Chapter 12: Relevant costs for decision making
Midterm review Chapters 1-7 (excluding chapter 4) ACTG 2020 Class 5 74...
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