Goldratt$$s theory of constraints is based on the focus on one goal and that is to make money. He bases this on the fact that if a firm does not make money it cannot achieve anything else. His financial measures of success are net profit, return on investment, and cash flow, and his operational measures of success are throughput, inventory, and operational expenses.

The environment today looks at a more holistic approach that includes societal goals. Goldratt would argue that without money all this is moot as there are not any resources to achieve other goals.

In our discussion:

Explain Goldratt$$s theory of constraints

Compare his approach to other approaches, like MRP and Just$-$in$-$time $($JIT$).$

Which approach best achieves both firm and broader societal goals? Justify your response.

Is Goldratt$$s theory relevant today? Why or why not?