In the language of theory of constraints,inventory is:
A)The rate at which the system generates money through sales
B)Equal to the number of orders shipped
C)The raw material value of any goods being held in inventory
D)The sales of the plant minus the cost of raw materials used to produce those sales

Question

Quizplus · Accepted Answer

Inventory, in the language of the theory of constraints, refers to the raw material value of any goods being held in inventory. It represents the money that has been spent on acquiring the raw materials that are waiting to be processed or sold. This raw material value can also include the cost of labor and other expenses incurred to produce or acquire the goods.

In the Language of Theory of Constraints,inventory Is