ABSTRACT

This entry’s authors are experts in the Theory of Constraints (TOC). They recommend a “simplified” approach to building flexibility into the supply chain design, a key goal of TOC. The planning process should design in process “buffers” that protect against contingencies like swings in volume or interruptions in material supplies. Including visible buffers in a plan makes the plan less “optimal.” Consequently, there will always be “sophisticated” people who will try to reduce the buffers, usually in the interest of efficiency.