DEVELOPING EFFECTIVE MANUFACTURING STRATEGIES FOR PRODUCT MIX DECISIONS VIA THEORY OF CONSTRAINTS: A CASE STUDY

Authors : Gülşen Akman, Burcu Özcan

Pages : 1-18

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Publication Date : 2016-04-24

Article Type : Other

Abstract :One of the most important problems that today’s companies face the optimum product mix decision problems to maximize their profit level. Theory of constraints is one of the methods that can be used to solve these problems. In contrast to the traditional methods, TOC ensures superiority by determining the product mix. In this study, different manufacturing strategies are analyzed in the way of total income and gross profit within a firm manufacturing three types of products. Five different manufacturing strategies are investigated. Finally, it is found that the best strategy is TOC strategy according to total income and gross profit.
Keywords : Manufacturing strategy, product mix decisions, theory of constraint