ABSTRACT
Within the original Theory of Constraints (TOC), buffers that provide supply chain flexibility are planned in advance as part of process design. Buffers are defined by days of production that is long enough to protect a capacity‐constrained resource (CCR) against the risk of running out of work from upstream operations.Buffer management calls for monitoring work coming to the CCR so that managers can expedite a promised order if it appears that the order will be late. The recommended tool is a red‐yellow‐green alert system that triggers interventions. Green means there is no need for intervention to expedite orders. Yellow alerts managers to the possible need for intervention. Red calls for immediate intervention. Simplicity is provided in controlling the CCR over using multiple detailed work center schedules common in MRP environments.
