What is the constrained resource

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Susan Shi owns TestTutor, an educational tutoring center in Greenville, South Carolina. The center offers private tutoring in math, writing, and science. Information about the tutoring sessions is as follows:

                                                                    Math                      Writing                    Science

Session price                                      $34                          $50                $25

Variable labor costs                               20                            30                 10

Variable supplies cost                             2                              2                      1

Session length                                       45 minutes           90 minutes       30 minutes

Number of sessions demanded per week     140                      260                  130

Since the company opened five years ago, demand has grown faster than the supply of qualified tutors. Susan currently has enough tutors to provide only 420 hours of tutoring each week.

Problem 1: Suppose Susan has enough tutors lined up to provide 600 hours of tutoring each week. However, the building she currently leases has no room for expansion; when fully scheduled, it can accommodate only 420 tutoring hours each week. What is the constrained resource? How can Susan overcome the constraint to meet the current demand for her services and provide room for future growth?

Reference no: EM132656906

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