Please use this identifier to cite or link to this item: http://hdl.handle.net/11718/5770
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dc.contributor.authorMukherjee, Saral
dc.contributor.authorChatterjee, A. K.
dc.date.accessioned2010-07-20T04:40:56Z
dc.date.available2010-07-20T04:40:56Z
dc.date.copyright2006-05
dc.date.issued2010-07-20T04:40:56Z
dc.identifier.urihttp://hdl.handle.net/11718/5770
dc.description.abstractThe term 'bottleneck' has been extensively used in operations management literature. Management paradigms like the Theory of Constraints focus on the identification and exploitation of bottlenecks. Yet, we show that the term has not been rigorously defined. We provide a classification of bottleneck definitions available in literature and discuss several myths associated with the concept of bottleneck. The apparent diversity of definitions which has as much applicability in high variety job shops as in mass production environments. The key to the formulation of an unified concept of shadow price of resources. We propose a universally applicable bottleneck definition based on the concept of average shadow price. We discuss the procedure for determination of bottleneck values for diverse production environments. The Law of Diminishing Returns is shown to be a sufficient but not necessary condition for the equivalence of the average and the managerial shadow price. The equivalence of these two prices is proved for several environments. Bottleneck identification is the first step in resource acquisition decisions faced by managers. The definition of bottleneck presented in the paper has the potential to not only reduce ambiguity regarding the meaning of the term but also open a new window to the formulation and analysis of a rich set of problems faced by managers.en
dc.language.isoenen
dc.relation.ispartofseriesWP;2006/1950
dc.subjectBottlenecken
dc.subjectProductionen
dc.subjectSchedulingen
dc.subjectAverage shadow priceen
dc.subjectTheory of Constraints
dc.titleUnified concept of bottlenecken
dc.typeWorking Paperen
Appears in Collections:Working Papers

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