The Theory of Constraints (TOC) Approach Is Strategically Important in Dynamic

question 58

Multiple Choice

The theory of constraints (TOC) approach is strategically important in dynamic markets because it leads to:

• A) A more responsive and flexible manufacturing environment.
• B) Better customer relationships.
• C) Quicker data accessibility.
• D) Faster setup times.

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Definitions:

Fixed Assets

Permanent tangible properties engaged in business operations, which are unlikely to be used up or exchanged for cash in the span of a year.

Goodwill

An intangible asset that is created from such favorable factors as location, product quality, reputation, and managerial skill.

Competitive Advantage

An advantage that allows a business to generate greater sales or margins compared to its market competitors, often through unique resources, capabilities, or efficiencies.

Intangible Assets

Intangible assets are non-physical but valuable assets such as intellectual property, brand recognition, and patents, which contribute to a company's value.