Book Report on the Goal Writing Assignment

Book Report on the Goal
Name
Institution
Book Report on the Goal
According to Goldratt and cox (2016), throughput is observed as the rate at which the system makes cash through sales. Goldratt states inventory as the total money, which the system has devoted for acquiring things; which are intended to be sold. The Goal defines operational expenses as the total money the system uses in order to turn inventory into throughput. The three features have definitions, which relates to the main goal of the system, which is to generate capital. The above definitions observe how money is entered into the system as operation expenses, stored in the system as inventory, and finally come out of the system only to come back around as throughput. They are useful as they help the plant to develop operational rules geared towards achieving the main goal.
The phenomena of dependent events are composed of those events that change when their dependent event change, for example, the increase in the cost of raw materials will definitely change the overall cost of production. There must be a series of events occurring before another one begins. The phenomenon of statistical fluctuations involves a type of number games that regard any type of particular variable or entity for example technology or inventory. The above definitions of the phenomenon can be illustrated in real life as when the cost of raw material increases because of tax rate increase then the statistical fluctuations and the dependent events are directly or indirectly affected. The experienced change will affect the throughput of the system production procedure, as the increase in tax rate will influence the buying decision of the co...