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Which of the following statements is not consistent with the theory of constraints?
A. There is no inventory of work in progress or finished goods held
B. Raw materials are converted into sales as quickly as possible
C. Operations prior to the bottleneck operate at the same level as the bottleneck
D. Conversion costs and investment costs are kept to a minimumSir in this question A is the correct answer, but sir can you explain how other options are consistent with theory of constraint.
Thanks in advance sir.
The other statements are “consistent” with the theory of constraints.
A. This aims to minimise inventory and reduce the time products spend in the production process.
B. This focuses on maximising throughput, which is the rate at which the system generates money through sales.
C. The operations prior to the bottleneck cannot produce more than the bottleneck’s capacity, so they operate at the same level to avoid creating excess inventory.
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