Theory of Constraints

More about: Theory of Constraints

What it calculates

The “Theory of Constraints” calculator computes Net profit per month (NP = T − OE) in $ from 6 parameters: unit price ($), totally variable cost per unit ($), constraint time per unit (min), available constraint time per month (min), monthly demand (pcs), operating expense per month (oe) ($).

A handy everyday calculator for daily tasks.

Example calculation

With parameters Unit price = 5,000 $, Totally variable cost per unit = 2,000 $, Constraint time per unit = 15 min, Available constraint time per month = 9,600 min, Monthly demand = 700 pcs, Operating expense per month (OE) = 1,200,000 $ the result is 720,000 $ (Prices are approximate — enter your own).

How to use

1. Enter unit price, totally variable cost per unit, constraint time per unit, available constraint time per month, monthly demand and operating expense per month (oe) — each field above is adjustable with a slider.
2. Net profit per month (NP = T − OE) ($) is calculated automatically as you type.
3. Check the worked example below to see the formula applied to real numbers.
4. Copy the result or bookmark this calculator.

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