Question

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

Answer 1

Answer:

The answer is "Option B"

Explanation:

In this question, Higher incomes and profits are correct because it minimizes the congestion operating frequency by 10%. It takes a long time and decreasing the processing, which would have had an impact on revenue and profit directly. Performance would grow, generating additional sales, that's why choice b is correct.