Question

When a firm provides a relatively small number of standardized products and services:

A) Capacity cannot be determined reliably.
B) Input measures are typically used.
C) Output measures are typically used.
D) Utilization becomes equal to capacity.

Answer 1

The correct answer is C. Output measures are typically used.

Step-by-step explanation:

The Theory of Constraints was first described by Eliyahu Goldratt in the early 1980s. It is a set of reflection processes that uses the cause and effect method to understand what is happening and thus find ways to improve.

The limiting factors are called restrictions or "bottlenecks." The TOC is a comprehensive management and improvement methodology. Simply put, it is based on the following idea:

The goal of any company is to make money, but it does not do so because of restrictions.

The theory of restrictions (TOC) is summarized in the following:

1 - IDENTIFY the restrictions

2 - EXPLOIT company restrictions

3 - SUBORDINATE the rest to the previous decision

4 - ELEVATE the restrictions.

5 - Return to Step 1