Vikram Ltd. produces 4 products using 3 different
machines. Machine capacity is limited to 3,000 hours for each machine. The
following information is available for February, 2009:
Products A B C D
Contribution (Sales-direct material)`
Machine Hours Required/ Unit:
1,500 1,200 1,000 600
Machine 1 10 6 2 1
Machine 2 10 9 3 1.5
Machine 3 10 3 1 0.5
Estimated Demand (units) 200 200 200 200
From the above information you are required to identify the bottleneck
activity and allocate the machine time.