Producing under the Theory of Constraints is not always the least expensive way to operate because:
A) Excess capacity is often retained in nonbottleneck areas.
B) Large batch inventories are tolerated.
C) Process management is sacrificed in order to manage individual steps in the production sequence.
D) Traceable costs are not distinguished from operating expenses.

Question

Quizplus · Accepted Answer

Excess capacity in nonbottleneck areas can lead to inefficiencies and increased costs, as resources are not fully utilized.

Producing Under the Theory of Constraints Is Not Always the Least