SUPPLY CHAIN MANAGEMENT FLASHCARDS

1. Which of the following best

specifies the flow of material through
the production process of
manufacturing an orbital satellite?
A
A. V
B. A
C. T
D. I
2. In a simplified DBR system, what
is the throughput-based constraint?
A. Raw materials
B. Shipping point
C. The active bottleneck
D. The market

3. What is the throughput if sales

revenue equals $250 million and
true variable costs equal $100
million?
B
A. $350 million
B. $150 million
C. $100 million
D. $2.5 million
4. Which one of the steps from the
five focusing steps represents the
likely point where an organization
would add more resources to the
CCR?
A. Identify the constraint.
B. Exploit the constraint.
C. Subordinate everything else.

D. Elevate the constraint.

In TOC, a network planning
technique for the analysis of a
projects completion time, used for
planning and controlling project
activities?

CRITICAL CHAIN METHOD

Capacity that is not used to either

produce or protect the creation of
throughput?

EXCESS CAPACITY

A holistic management philosophy

developed by Dr. Eliyahu M Goldratt
that is based on the principle that
complex systems exhibit inherent
simplicity.

THEORY OF CONSTRAINTS

In TOC, a process to continuously

improve organizational profit by
evaluating the production system
and market mix to determine how to
make the most profit using the
system constraint?

FIVE FOCUSING STEPS

The resource capacity needed to

protect system throughput
ensuring that some capacity above
the capacity required to exploit the
constraint is available to catch up
when disruptions inevitably occur?

IN TOC, throughput, inventory, and

operating expense are considered
performance measures that link
operational decisions to

PROTECTIVE CAPACITY

TOC PERFORMANCE MEASURES

organizational profit?
A management accounting method based on the
belief that, because every system has a
constraint that limits global performance, the most
effective way to evaluate the impact that any
proposed action will have on the system as a
whole is to look at the expected changes in the
global measures of throughput, inventory, and
operating expense?

THROUGHPUT ACCOUNTING

In TOC, a process in which all expediting in a

shop is driven by what is scheduled to be in the
buffers (constraint, shipping, and assembly
buffers)?

BUFFER MANAGEMENT

Any element or factor that prevents a system

from achieving a higher level of performance with
respect to its goal?

CONSTRAINT

A group of interrelated facilities manufacturing

and one or more levels of warehousing linking
the production, storage, and consumption
activities for spare parts and finished goods
inventory?

DISTRIBUTION SYSTEM

The TOC method for scheduling and managing

operations that have an internal constraint or
CCR?

DRUM BUFFER ROPE

A facility, function, department, or resource whose

capacity is less than the demand placed upon it?

BOTTLENECK