In a Shop Managed According to TOC Principles,inventory Is Needed

question 79

True/False

In a shop managed according to TOC principles,inventory is needed only in front of bottlenecks in order to prevent them from sitting idle.

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Definitions:

Inventory

Materials and products that a business keeps for the ultimate goal of resale or processing.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to the amount of money invested.

Investment Opportunity

A potential situation where an individual or organization can invest capital with the expectation of achieving a return.

Profit Center

A business unit or division that is responsible for generating its own revenue and profit, with its financial performance being tracked separately.