The First Step in TOC Methodology Is To

question 109

Multiple Choice

The first step in TOC methodology is to:

• A)identify the constraint.
• B)exploit the constraint.
• C)subordinate the system to the constraint.
• D)elevate the constraint.

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Definitions:

Call Option

A finance-related agreement that allows the buyer the choice, yet not the duty, to purchase an equity, debt instrument, commodity, or another type of asset at an agreed-upon price within a set period.

Expiration

In finance, expiration refers to the date on which a derivative contract (such as options or futures) ceases to exist and settles between the contracting parties.

Arbitrage Opportunity

The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another, realizing a profit with no risk.

American Call Option

An American call option is a financial contract that gives the holder the right, but not the obligation, to buy an asset at a specified price before the option expires.