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San Diego State University Operations And Supply Chain Management Assignment Help - Theory of constraints,

Question - Theory of constraints, throughput contribution, quality, relevant costs. Aardee Industries manufactures
pharmaceutical products in two departments: Mixing and Tablet-Making. Additional information on the
two departments follows. Each tablet contains 0.5 gram of direct materials.

The Mixing Department makes 200,000 grams of direct materials mixture (enough to make 400,000
tablets) because the Tablet-Making Department has only enough capacity to process 400,000 tablets.
All direct material costs are incurred in the Mixing Department. Aardee incurs $156,000 in direct
material costs. The Tablet-Making Department manufactures only 390,000 tablets from the 200,000
grams of mixture processed; 2.5% of the direct materials mixture is lost i ...Read More

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