The theory of constraints seeks to maximize
A)inventory control.
B)contribution margin.
C)capacity.
D)throughput contribution.

Question

Quizplus · Accepted Answer

The theory of constraints seeks to maximize throughput contribution, which is the difference between the revenue generated by selling products and the direct costs of producing them. The theory of constraints identifies the bottleneck or constraint in a production process and focuses on improving the efficiency of that constraint to increase overall throughput contribution. This approach can result in increased profitability and capacity utilization.

The Theory of Constraints Seeks to Maximize