The Fifth Step in Theory of Constraints Application, "Do Not

question 122

Multiple Choice

The fifth step in Theory of Constraints application, "do not let inertia set in," means that the analyst should:

• A) create a schedule that maximizes the throughput of the bottlenecks.
• B) repeat the analysis to identify and manage new set of constraints.
• C) consider increasing capacity of the bottleneck.
• D) schedule non-bottleneck resources to support the bottleneck.

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Definitions:

Cloud-based Computing

A technology that allows individuals and companies to access software, storage, and other computing services over the Internet, rather than through local servers or personal devices.

Forms File

A reference file containing copies of the firm’s most commonly used legal documents and informational forms. The documents in the forms file serve as models for drafting new documents.

Moral Hazard

A situation in which one party engages in risky behavior knowing that it is protected against the risk by another party.

Asymmetric Information

A situation where one party in a transaction has more or superior information compared to another, often leading to an imbalance in the transaction.