THEORY OF CONSTRAINTS AS AN EFFECTIVE TOOL FOR SUPPLY CHAIN MANAGEMENT

Abstract

Supply chain management is focused on achieving better results (larger benefits) for all involved parties, than achieved by working in isolation. However, a lack of awareness about the existence of constraints along the supply chain, or lack of knowledge how to overcome it, decreases the benefits of collaboration. This paper attempts to show how to apply the Theory of Constraints approach to overcome typical strategic conflicts in supply chain management. It presents how the philosophy of the Theory of constraints can be used to improve the general framework for cooperation in SCM.