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Question 275

The use of theory of constraints (TOC) differs from traditional decision making because it:

    Correct Answer: A

    The Theory of Constraints (TOC) primarily focuses on optimizing the throughput of a system by identifying and managing its constraints. This approach emphasizes the utilization of resources rather than solely considering the cost of a product. By targeting and improving the performance of the bottleneck resources, overall system efficiency and profitability can be enhanced. Therefore, it examines resource utilization to ensure that constraints are effectively managed.

Discussion
igrdOption: A

A. examines the resource's utilization rather than the cost of a product. The Theory of Constraints (TOC) differs from traditional decision-making methods because it focuses on identifying and managing the system's constraints to maximize throughput, rather than solely considering the cost of a product. This approach emphasizes the efficient use of resources, particularly the ones that limit overall system performance, to improve profitability and optimize business operations.

Rajiv8047Option: A

examines the resource's utilization rather than the cost of a product

BakrAminOption: C

C more relevant to resources constraints

JustiniboyOption: D

can someone please explain why this is D?