Which of the following objectives is a major principle of theory of constraints (TOC) accounting when applied to a supply chain?
Which of the following objectives is a major principle of theory of constraints (TOC) accounting when applied to a supply chain?
The major principle of the theory of constraints (TOC) accounting when applied to a supply chain is to maximize revenue generation. The TOC focuses on identifying and managing the constraints or bottlenecks in the supply chain to improve the throughput, which directly impacts revenue generation. By alleviating these bottlenecks, the overall system efficiency and productivity are improved, leading to increased revenue.
I Think is B. The theory of constraints (TOC) provides a systematic method of increasing a system’s “throughput”
The key word is here is “accounting” so I believe indeed it is C
I agree, "accounting" = "C"
The theory of constraints accounting focuses on identifying and managing the constraints or bottlenecks in the supply chain that prevent the system from achieving its maximum potential.
should be C
C. Maximize revenue generation