Which of the following describes methods to maximise operating profit when faced with some bottleneck and some non-bottleneck operations?
A)Theory of constraints
B)Quantitative factor
C)Qualitative factor
D)Sunk cost

Question

Quizplus · Accepted Answer

The theory of constraints is a management approach that focuses on identifying and resolving bottlenecks in order to improve overall system performance and increase operating profit. It involves prioritizing the management of bottleneck operations and optimizing non-bottleneck operations to support them. The other options listed do not directly relate to methods for maximizing operating profit in the context of bottlenecks and non-bottleneck operations.

Which of the Following Describes Methods to Maximise Operating Profit