Using the Theory of Constraints to rationalize optimal product assortment decisions - a case study in a ready-made clothing factory in Najaf
Keywords:
Theory of constraints, rationalizing decisionsAbstract
The decision axis of managerial process and their the means to achieve their goals and that the success achieved by any organization depends on the capacity and efficiency of its leadership to make good decisions and that the decisions made in the organization are many and varied Among these decisions in the organization is the decision to choose product mix optimal and which is one of the important decisions taken in the organization because it is estimated the size of the profits that you\'ll get them organized in the near future and works to exploit the resources available to the organization wisely and in a form which achieves higher profits.
Where decisions are taken optimum production mix under the traditional entrance depending on the net profit, as is the case in the factory under study which are related to a positive correlation relationship with the percentage in the product mix so as to maximize the net profit as possible that is, they give priority in production of the product that achieves the highest net profit without taking into account the resources listed that can deplete the product, while the theory of constraints working on taking into consideration the resources listed as well as contribution margin product that is, they give priority of the product that achieves the highest contribution margin less restricted resources and so it combines financial measures as well as measures operational when choosing a product mix optimal and this is what stimulated researcher for a study of the theory of constraints in the process of selecting a product optimal and can check the results in the event of unreliable.
Has been adopted methodology case study to determine the effectiveness of the Theory of Constraints in the selection of product mix optimal in the factory under study The study was conducted using the method of simulation of the quantities of production and Times of stages productivity for each product eleven has indicated the study by the results that the application of the Theory of Constraints inchoose the optimal product mix lead to maximize output and increase the profits that can be achieved by the Factory under study compared with the traditional method established by the Factory.
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