In the Drum-Buffer-Rope Conceptualization Used in the Theory of Constraints,the

question 110

Multiple Choice

In the drum-buffer-rope conceptualization used in the theory of constraints,the "buffer" refers to:

• A)inventory just before the bottleneck.
• B)the bottleneck of the process.
• C)total capacity of the process.
• D)first stage in the process.
• E)the master schedule.

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Definitions:

Average Total Cost

The cost per unit of output, calculated by dividing the total cost (both fixed and variable) by the total quantity produced.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Industry Supply

Industry Supply is the total quantity of a good or service that all producers in an industry are willing and able to sell at various prices within a specified time period.

Representative Firm

An idealized company in economic models which is designed to reflect the typical characteristics of a firm within a particular industry.