What’s it all about?
A technique using contribution to prioritise products when we can’t make everything we could sell because there are restrictions on the availability of something that we need.
Also a term used in Budgeting which we use to work out the most we could sell based on the fact that there isn’t enough of everything we need. But here we are going to look at it as a prioritising method.
Practice.
Reading.
An example of not managing your resources having an impact on sales. Insufficient pilots means Flybe had to cancel flights (and lost sales). Not an easy shortage to overcome overnight.
Watch This.
Amstel – The Smallest Bar in Amsterdam from Tom Webber on Vimeo.
Is the number of chairs really what stops him selling more Amstel beer when the canal is frozen?
Possible Written Questions.
(No indication of marks – the more marks a question gets, the more you are expected to write – detail that is, not just words!) If you can’t answer these, you need to do some more reading. I do ‘find’ questions elsewhere, so these aren’t all questions I have used myself.