Theory of constraints focuses on what three operation measures of system performance?
A)inventory, throughput, and loose constraints
B)throughput, operating expenses, and product mix
C)throughput, inventory, and operating expenses
D)throughput, operating expenses and contribution margin

Question

Quizplus · Accepted Answer

The theory of constraints focuses on three key operation measures of system performance: throughput, inventory, and operating expenses. Throughput refers to the rate at which a system generates its goal, such as revenue. Inventory refers to the amount of money that a system has invested in purchasing things that it intends to sell. Operating expenses refer to the costs incurred to run and maintain a system.

Theory of Constraints Focuses on What Three Operation Measures of System