Theory of Constraints and its Role in Cost Rationalization

Authors

• Ayad Raheem Jalfan, Al-Muthanna University, College of ScienceFollow
• Abdulmohsin A. Jaber, Al-Muthanna University, College of ScienceFollow
• Oday Jabbar Abed, Al-Muthanna UniversityFollow
• Haidar Thajel Jawad, Al-Muthanna University, College of Administration and EconomicsFollow

Abstract

The current research aims to demonstrate the epistemological foundations for applying the Theory of Constraints and its role in cost optimization within the economic unit under study. To achieve the research objectives, a case study was conducted in one of the formations of the Ministry of Industry and Minerals – the General Company for Rubber and Tire Industries – Babylon Tire Factory – Al-Raklim Plant. The research adopted the descriptive and analytical method. In addition, a questionnaire was used as the primary tool for collecting data from the economic unit – the research unit. (100) questionnaires were distributed, and (80) questionnaires were returned, as 20 questionnaires were considered damaged and unreturned. The data were analyzed using the SPSS statistical analysis program. The research reached a number of results, the most important of which is that the Theory of Constraints helps in setting a production schedule and then seeks to maximize the efficiency of resource utilization, which contributes to cost optimization in the economic unit under study. The research concluded with a set of recommendations, the most important of which was: The management of the economic unit should rationalize costs, work on studying the market and identifying customer desires, and design the product in a way that suits market developments while maintaining product quality.

Keywords

Theory of constraints, Reducing cost

Recommended Citation

Jalfan, Ayad Raheem; Jaber, Abdulmohsin A.; Abed, Oday Jabbar; and Jawad, Haidar Thajel (2026) "Theory of Constraints and its Role in Cost Rationalization," Muthanna Journal of Administrative and Economics Sciences: Vol. 16 : Iss. 2 , Article 20.
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