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Question 19 According to the Theory of Constraints, the primary goal of a for-profit organization is to: Increase market shar

Question 18 The steps in Goldratts Theory of Constraints problem solving approach include: (A): Identify and exploit the sys

Question 17 Volunteer Boats has recently adopted TOC to improve the effectiveness of their manufacturing processes. According


Did your inventory go down? D Question 16 According to the Theory of Constraints, the three main operational measures of perf

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Answer #1

16) B option is correct

The three measures are throughput, inventory/ investment and operating expense

17) B option is correct

Rate of return = net profit/ investment

Net profit = throughput- operating expense

If denominator increase and numerator remain constant the total value decreases so rate of return falls as inventory increases.

18) E option is correct

It includes both A and C identify and exploit the system constraint and subordinate everything to the constraint and elevate the constraint .

19) B option is correct

The best to achieve its goal is to reduce operating expense, reduce inventory and increase throughput.

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