North of Seven Company has a bottleneck operation that slows production. Which of the following tools or approaches could the firm use to determine the most cost-effective ways to eliminate this problem?

Question

Quizplus · Accepted Answer

The theory of constraints (TOC) is a management philosophy that emphasizes identifying and eliminating operational bottlenecks to improve overall system performance. TOC provides a systematic approach to identify the most cost-effective ways to eliminate bottlenecks by focusing on the critical resource that limits the system's output. Thus, it is the best choice to address the issue faced by the North of Seven Company. Linear programming, decision-tree diagrams, payoff matrices, and strategic path analysis are other decision-making tools that can be helpful in various situations, but they are not specifically designed to address bottleneck operations.

North of Seven Company Has a Bottleneck Operation That Slows