How can ABM be used to manage constrained resources?
A) ABM cannot be used to manage constrained resources
B) ABM can help managers identify the best way to relax constraints
C) ABM can help managers decrease the rate at which products get through the manufacturing process
D) ABM can help managers justify price increases due to constrained resources

Question

Quizplus · Accepted Answer

ABM, or Activity-Based Management, focuses on managing activities to improve the value received by the customer and the profit achieved by providing this value. This includes identifying non-value-added activities and resources, and finding ways to reduce or eliminate them. In the context of constrained resources, ABM can help managers identify the best ways to relax these constraints, such as by improving process efficiency or reallocating resources, to ensure that the most critical activities are supported and the overall process flow is optimized.

How Can ABM Be Used to Manage Constrained Resources