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1. One reason for inventory is to prevent shutdowns. How does the JIT approach to inventory management deal with this potential problem?
2. Explain how the Kanban system helps reduce inventories.
3. What is a constraint? An internal constraint? An external constraint?
4. What are loose constraints? Binding constraints?
5. Define and discuss the three measures of organizational performance used by the theory of constraints.
6. Explain how lowering inventory produces better products, lower prices, and better responsiveness to customer needs.
7. What are the five steps that TOC uses to improve organizational performance?
8. What is a drum-buffer-rope system?
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