In production, a bottleneck is a resource or operation that limits output, essentially determining the capacity of the entire process. Even marginal changes in the capacity of a bottleneck will change the capacity of the process. This case teaches students about the economics of bottlenecks, and how bottlenecks can affect a firm's management decisions. Students also learn a method, using three inputs, that facilitates bottleneck analysis.
Case ID: 090205
This case is used in core curriculum
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