1.3 Key factor analysis – discussion aspects Assumptions
§ A single quantifiable objective – e.g. maximise contribution. In reality there may be multiple objectives such as maximising return while simultaneously minimising risk.
§ Each product always uses the same quantity of the scarce resource per unit:
- e.g. it always takes 2 hours to make a unit of Xwww.Examw.com
- in reality there may be economies of scale and/or learning effects that result in a unit of X taking fewer hours as volumes increase.
§ The contribution per unit is constant. In reality this may not be the case:
- the selling price may have to be lowered to sell more
- discounts may be available as the quantity of materials needed increases
- there may be economies of scale.
§ Products are independent – it is possible to prioritise product A at the expense of B. In reality this may be difficult:
- a long timescale would introduce the possibility of fixed costs changing.
Test your understanding 2
A large supermarket is having some building work done for the next month. As a result shelf space is more limited than normal.
Comment on the application of key factor analysis to this problem.
发表于 2012-2-23 17:09:42
