Which of the Following Is TRUE About the Theory of Constraints

Multiple Choice

Which of the following is TRUE about the theory of constraints?

A) TOC recognizes that EOQ is important.
B) TOC recognizes that lowering inventory decreases carrying costs and thus decreases operating expenses and improves net income.
C) TOC recognizes that lower inventories mean more defects.
D) TOC recognizes that lower inventories mean slower response to customers.