gen-define-supply-chain-bottlenecks-and-give-one-short-worked-ex-3d6d

Define supply chain bottlenecks and give one short worked example.

# Supply Chain Bottlenecks ## Definition A **supply chain bottleneck** is a point of congestion or constraint in the supply chain where the flow of materials, information, or products is slowed or limited, reducing the overall throughput and efficiency of the entire system. It represents the stage with the lowest capacity that limits total output. ## Worked Example **Scenario:** A furniture manufacturer has three production stages: 1. **Wood cutting**: Can process 100 chairs/day 2. **Assembly**: Can process 60 chairs/day 3. **Finishing**: Can process 80 chairs/day **Analysis:** - Even though wood cutting can prepare 100 chairs daily, assembly can only handle 60 - The finishing department sits idle 20 chairs worth of capacity (80 - 60 = 20) - **Assembly is the bottleneck** at 60 chairs/day **Impact:** - Maximum daily output = 60 chairs (limited by the bottleneck) - Wood cutting has 40 chairs/day excess capacity (wasted) - Finishing has 20 chairs/day excess capacity (wasted) **Solution:** To increase overall production, the company must increase assembly capacity (add workers, equipment, or shifts) since improving other stages won't help until assembly exceeds 80 chairs/day.