Which of the following is NOT a performance measure used by theory of constraints to evaluate the effectiveness of improvements?
A)increased throughput
B)reduction in inventory
C)reduction in throughput
D)reduction in operating expense

Question

Quizplus · Accepted Answer

Reduction in throughput is not a performance measure used by theory of constraints to evaluate the effectiveness of improvements. Instead, theory of constraints seeks to increase throughput (i.e. the rate at which a system generates money through sales). Other performance measures used by theory of constraints include reducing inventory, reducing operating expense, and increasing net profit.

Which of the Following Is NOT a Performance Measure Used