The objective of the theory of constraints is to increase throughput contribution (sales dollars minus direct materials costs),minimize investments,and manage production by
A)letting the bottleneck set the pace for the rest of operations.
B)hiring more direct labor.
C)increasing distribution channels.
D)increasing production facilities.

Question

Quizplus · Accepted Answer

The theory of constraints focuses on identifying the bottleneck in the production process and managing the rest of the operations accordingly. By allowing the bottleneck to dictate the pace of production, throughput can be increased without the need for additional investments in facilities or labor. This approach helps minimize investments and maximize sales dollars by optimizing the use of existing resources. Therefore, choice A is the best option. B, C, and D are not relevant to the theory of constraints.

The Objective of the Theory of Constraints Is to Increase