What is the theory of constraints and apply it to walmart. (Essay Sample)

Theory of Constraints and its Application to Walmart
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Theory of Constraints and its Application to Walmart
The theory of constraints entails a methodological system of detecting restrictive conditions in a business that prevents it from achieving its goal. These restrictive conditions are referred as constraints. This theory helps in improving the different constraints through an improvement approach in complex systems such as manufacturing industries to fix the constraints in their system which makes the companies fail from attaining the set goals or target profit. The benefits attributed to the effective execution of the theory include increased profit, fast expansion, increased capability, and a reduced inventory which aims at eliminating the bottlenecks to reduce the work-in-progress.
This theory reduces the constraints using different principles which entail the focusing steps which are the methodology of identification and elimination of constraints, use of the thinking process which is the tool for problem analysis and resolving, and a throughput accounting which is a measuring and guiding tool for decision making (Schragenheim, 2017 p13).