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Glossary Logistics / Term

Theory of Constraints (TOC)

A production management theory which dictates that volume is controlled by a series of constraints related to work center capacity, component availability, finance, etc. Total throughput cannot exceed the capacity of the smallest constraint, and any inventory buffers or excess capacity at non-related work center is waste.

Permanent link Theory of Constraints (TOC) - Creation date 2021-12-06


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