When less is better: Insights from the product mix dilemma from the Theory of Constraints perspective

Perhaps due to its origins in a production scheduling software called Optimised Production Technology (OPT), plus the idea of focusing on system constraints, many believe that the Theory of Constraints (TOC) has a vocation for optimal solutions. Those who assess TOC according to this perspective indicate that it guarantees an optimal solution only in certain circumstances. In opposition to this view and founded on a numeric example of a production mix problem, this paper shows, by means of TOC assumptions, why the TOC should not be compared to methods intended to seek optimal or the best solutions, but rather sufficiently good solutions, possible in non-deterministic environments. Moreover, we extend the range of relevant literature on product mix decision by introducing a heuristic based on the uniquely identified work that aims at achieving feasible solutions according to the TOC point of view. The heuristic proposed is tested on 100 production mix problems and the results are compared with the responses obtained with the use of Integer Linear Programming. The results show that the heuristic gives good results on average, but performance falls sharply in some situations. © 2013 Copyright Taylor and Francis Group, LLC.

Informe de la Segunda Reunión de Expertos sobre Industrias de Bienes de Capital en América Latina = Report of the Second Expert Group Meeting on Capital Goods Industries in Latin America

Presenta la organizacion, resumen de los debates, conclusiones y recomendaciones de la reunion que trato sobre la demanda de bienes de capital del sector de generacion y distribucion de energia electrica, mecanismos para una utilizacion de la capacidad de compra del sector electrico en la promocion y desarrollo de la industria de bienes de capital, perspectivas para la cooperacion regional e internacional.