Theory of constraints

  • Theory Of ConstraintsCross Docking: Don't try this at home!

    Cross Docking: Don’t try this at home!

    The practice of cross docking is another error that follows logically from a mistaken assumption. I have already shown why MIN/MAX and EOQ are wrong. The basic assumption is that “reducing logistics costs increases profits”, and the problem is precisely how costs are calculated. I won’t go into that now; another time I will show how cost accounting gives the wrong information…

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  • Theory Of ConstraintsMIN/MAX and EOQ fallacy

    MIN/MAX and EOQ fallacy

    Why do we have inventories? All consumer goods, such as soap or food, even household appliances, you know what I mean, all these products are in inventories. We are used to thinking about store inventories, but there are also inventories in distribution centers and even factory warehouses for finished products. This inventory has a unique feature: it was purchased, shipped,…

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  • Theory Of ConstraintsLine balancing

    Refutation of line balancing

    On June 16, 2019, an industrial engineering portal published Line Balancing, where Dr. Eliyahu Goldratt is quoted as saying “An hour lost in the bottleneck is an hour lost in the whole system”, but the article lacked analyzing the lines as systems. The conclusion of that article is that balancing manufacturing or assembly lines reduces unit costs, and further says…

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