When a bottleneck occurs in a process used in the production of multiple products, the company must determine the contribution margin for each product and give priority to the product that has the lowest contribution margin per bottleneck hour.

a. True
b. False

Respuesta :

Answer:

b. False

Explanation:

In project management or in production processes, a bottle neck is a process where the limited capacity of the process reduces its capacity of the whole chain process. The results of having bottleneck in a process are supply overstock, stalls in production, pressure from customers, etc.

When bottleneck occurs in the process used in production of multiple products, the company should determine contribution margin for each of the product and then priority should be given to that product that contributes to the maximum contribution margin per bottleneck hour.