Theories Of Constraint In Supply Chain Management

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Theory of Constraints and Supply Chain Management

The theory of constraints presents an important tool through which modern managers can improve organizational processes and increase profits. The theory views constraints within an organization’s systems as opportunities for improvement rather than obstacles to success. First introduced by Eliyahu Goldratt in his novel The Goal: A Process of Ongoing Improvement, the theory has been used widely in the mainstream management field. However, the theory has not been widely applied in supply chain management despite its range of benefits in this field. The theory allows for practical and effective information management in supply chains while promoting global inspiration to collaborate among workers from diverse geographic backgrounds. Despite these benefits, challenges such as communicational and computational technicalities across geographic barriers continue to hinder the theory’s popularity in the field of supply chain management.

Theory of Constraints and Supply Chain Management
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In the novel, the main character is Alex Rogo. Alex serves as the manager at UniWare division plant located in Bearington. Although little information is provided about the company’s profile, Goldratt makes it known to his readers of the company’s reliance on heavy machinery as well as sophisticated engineering processes (Goldratt & Cox, 1992). When the company’s poor performance persists, its president informs Alex that it might need to be closed in three months time if the situation does not improve. Alex contacts his former instructor Jonah, for help (Rahman,

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