Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen

Exercise 30

A dedicated pharmaceutical plant uses the theory of constraints and has three processes: Mixing, Encapsulating, and Packaging. For Mixing, sufficient materials are released to produce 4,000 packages of product per day. Encapsulating has a buffer inventory of 8,000 units (work in process from Mixing). Packaging produces 4,000 units per day. Which of the three processes sets the production rate of 4,000 units per day? a. The Mixing Department
B) The Encapsulating Department
C) The Packaging Department
D) Cannot be determined