APICS Certified Supply Chain Professional (CSCP) — Question 149

The use of theory of constraints (TOC) differs from traditional decision making because it:

Answer options

• A. examines the resource's utilization rather than the cost of a product
• B. recognizes that the individual resources that limit business performance are difficult to find and manage
• C. places greater emphasis on timing than cost in adjusting resources that are limiting business performance
• D. provides a way to analyze the operating cost of a resource that is easier to use than traditional accounting methods

Correct answer: A

Explanation

The correct answer, A, highlights that TOC prioritizes the utilization of resources, which is a key aspect of enhancing performance rather than merely looking at product costs. Options B, C, and D do not accurately capture the fundamental difference in focus that TOC has compared to traditional decision-making methods.