A bottleneck:
A) Is not a capacity constraint
B) Has an opportunity cost of lost revenue from unmet demand
C) Is unrelated to capacity
D) Cannot be used efficiently

Question

Quizplus · Accepted Answer

A bottleneck is a capacity constraint where the limited capacity of a resource restricts the maximum output of a process. It creates a bottleneck in the flow of operations and can lead to delay or increased lead time for the output. The opportunity cost of the bottleneck is the lost revenue from unmet demand that could have been satisfied if the capacity constraint were not present. Therefore, option B is the correct choice. Options A, C, and D are incorrect as they do not define the nature of a bottleneck accurately.

A Bottleneck