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About Constraint Theory
This document describes how applying Goldratt's Theory of Constraints (TOC) can help reduce the Bullwhip Effect in supply chains. The Bullwhip Effect is the amplification of changes in demand as orders move through the supply chain, causing inefficiencies. TOC focuses on managing bottlenecks to improve overall system performance. The researchers developed an agent-based model of a supply chain using the Beer Game exercise to simulate two management approaches - TOC's Drum-Buffer-Rope methodology versus a traditional order-up-to inventory policy. Simulation results provide evidence that applying TOC induces significant improvements for each supply chain member, reducing costs without undesirable side effects. TOC takes a systemic view that generates operational and financial
Detailed Information
| Author: | ['Ritabrata Mukherjee'] |
|---|---|
| Publication Year: | 2016 |
| Pages: | 12 |
| Language: | English |
| Format: | |
| Price: | FREE |
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