Theory of Constraints in Supply Chain Management

Social Share

 

Controlling the inventory is part of Supply Chain management. For preventing inventory stock out situations sufficient inventory need to be maintained in the supply chain. This is crucial as if at any time insufficient inventory occurs the customers will move out to competitors and getting them back will be a tedious process.  Things like poor forecasts and the fluctuations in the inventory need to be considered while stocking the inventory in supply chain. In the case of Supply Chain Management, there are factors in the logistics apart from manufacturer and suppliers.

The various process involved in the Supply Chain Management is expensive and complicated at the same time. The components in the supply chain depend on each other and maintain the continuous flow of money and materials. The real value of the product is calculated once the customer is satisfied.

The Theory of Constraints solution establishes advantage when there is more availability of stock or dramatic reduction due to damages when the flow of the materials and components is interrupted by shortage or surplus. Along with Theory of Constraints, the delay in time after the consumption which is followed by the delivery also needs to be considered in Supply Chain Management.

The inventory stocked at the locations need to be monitored by setting an upper limit which will be closely related to the maximum amount of consumption within the prescribed time frame. This also ensures that no additional inventory is made and stored which is more than the required levels.
online mba supply chain

Related Links:

get in touch

Fill your details in the form below and we will be in touch to discuss your learning needs

    Full Name

    Email Id

    Phone Number

    Message

    Latest Blogs

    Transforming Decision-Making Through Big Data

    Transforming Decision-Making Through Big Data

    Ramadan Blessings-Uniting Communities Through Compassion and Service – A Westford WeCares Initiative!

    Uniting Communities Through Compassion and Service – A Westford WeCares Initiative!

    Title 1

    Mastering Soft Skills: Why Communication, Leadership, and Critical Thinking Matter in Bachelor Programs

    Westford Continues To Empower Women With Over 3 Million Dirhams In Accelerather Scholarships

    Westford Continues To Empower Women With Over 3 Million Dirhams In Accelerather Scholarships

    Ethics in Action-Harmonizing Business Principles and Decision Making in Today's Corporate Landscape

    Ethics in Action: Harmonizing Business Principles and Decision Making in Today’s Corporate Landscape