MGSC 395 Exam 2 USC Gaffney Exam | Questions & 100% Correct Answers (Verified) | Latest Update | Grade A+

Theory of Constraints : 1) Identify the system's constraints 2) Decide how to exploit the system's constraints 3) Subordinate everything else to the above decision 4) Elevate the system's constraints 5) Do not allow inertia to cause a system constraint As ___________ decreases, Net Profit, Cash Flow, and Return on Investment increase. : inventory As ___________ increases, Net Profit, Cash Flow, and Return on Investment increase. : throughput 2 | P a g e As ________ decreases, Net profit, Cash Flow, and Return on Investment increase. : operating expense Bottleneck : - has highest total time per unit processed or - has highest average utilization and total workload Drum-Buffer-Rope : - Based on Theory of Constraints - Regulates the flow of Work in Process at Bottleneck Drum : - Bottleneck schedule; sets the pace Buffer : - Inventory; protects the Bottlenec