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:

Required Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in cash or additional shares.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.

Record Date

The specific date set by a company on which the investors must own shares to be entitled to dividends.