Opportunities for application of the theory of constraints in enterprises from the agricultural sector
Teodora Roupska
Abstract: The theory of constraints (TOC) arose in the 1980s. Its creator is Eliahu Goldratt. It is mainly applied in industrial activities. Goldratt proposes a new concept of enterprise management, based on the systems approach and the management of cash flows - incoming and outgoing. However, if the enterprise carries out many functionally separated activities or it has several geographical segments with complex connections between them, then the scheme of a linear chain, without branches, proposed by Goldratt cannot be applied. Separate functional activities or geographic segments are organized and operated as separate operating segments for financial reporting purposes.
The presented article explores the possibilities of applying TOC within agricultural enterprises, where there is diversification of activity and existing separate functional or geographical operational segments, something that is characteristic of Bulgarian agricultural enterprises. Two separate cases encountered in the business practice of enterprises from the agricultural sector are analyzed:
1. When the individual operating segments function independently of each other.
2. When the individual operating segments are interconnected.
The presented article explores the possibilities of applying TOC within agricultural enterprises, where there is diversification of activity and existing separate functional or geographical operational segments, something that is characteristic of Bulgarian agricultural enterprises. Two separate cases encountered in the business practice of enterprises from the agricultural sector are analyzed:
1. When the individual operating segments function independently of each other.
2. When the individual operating segments are interconnected.
Keywords: agrarian enterprises; operating segments; theory of constraints
Date published: 2023-12-22
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