The Theory of Constraints Seeks to Maximize Throughput Contribution, Which

question 96

True/False

The Theory of Constraints seeks to maximize throughput contribution, which equals sales revenue less direct materials cost.

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Definitions:

Level Material Use

A strategy in production planning that aims for a constant rate of material use, minimizing fluctuations in inventory levels.

Repetitive Manufacturing

A production method where the same products or components are produced in a continuous flow or on a repetitive basis.

Intermittent Process

Refers to a production system where the flow of materials is irregular, handling a variety of products or services.

First Come

A principle where services or resources are allocated to recipients in the order of their arrival or request.