Adirondack Designs, Inc., produces wooden furniture in a sequential process involving four departments: cutting, assembly, finishing, and packaging. Labor time available in the finishing department exerts a limiting constraint on the output of the company. According to the Theory of Constraints, the pace of production for the entire system would be set by:

Question

Quizplus · Accepted Answer

The Theory of Constraints posits that the pace of production for the entire system is determined by its bottleneck, which in this case is the finishing department, as it has a limiting constraint on output.