A constraining factor, also known as a limiting factor, is an element that restricts or limits the production or sale of a given product. Nearly all firms encounter one or more constraining factors, which could involve limited machine-hours and labor-hours, shortages of materials and skilled labor, or restrictions related to display space, warehouse space, and working capital.
A production stoppage caused by various factors such as equipment installation or breakdown, shortage of work orders, lack of materials or skilled labor, and other disruptions.
