A manufacturing company will have a binding constraint unless the capacity in all its departments exceeds the demand of its products.

Question

Quizplus · Accepted Answer

A binding constraint occurs when a company's capacity or resources are limited and cannot meet the demands of its products. This is a common issue in manufacturing companies, where certain departments may have limited capacity due to machinery, labor, or other factors. If the demand for the company's products exceeds its capacity in any department, then a binding constraint exists.

A Manufacturing Company Will Have a Binding Constraint Unless the Capacity