There is a couple of concrete words that Mr. Goldratt uses in the explanation and illustration of the Theory of Constraints in the book “The Goal”. The primary terms applied a lot in the book are Throughput, Inventory and Operational Expenses. With respect to the fact that the Theory of Constraints is about money and constraints, he also mentions Return on Investment and Bottlenecks a lot. Understand the meaning of the above definitions and comparing them to the meaning he gives them is essential for the optimal analysis of “The Goal”.
ThroughputIn the contemporary business world, throughput refers to ...
