Using the theory of constraints for effective supply chain management
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This article provides methodology and guidelines for employing a 'constraint-based' approach for effective supply chain management. The article explores the shortcomings of using a traditional supply chain management as well as an Activity Based Management (ABM) approach in the managing of supply chains. In addition, the article introduces a supply chain management methodology based on achieving a global optimum for the entire chain. Examples are provided on how constraint-based techniques are currently being applied to the management of certain subsets of the supply chain. Guidelines are presented for managing supply chains using a constraint-based approach. Finally, the article ends with the discussion of the implications regarding the use of a constraint-based approach to the management of supply chains along with the need for future research in this area.