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| {{Other uses|Throughput}}
| | Andera is what you can call her but she never really favored that name. To climb is some thing I truly enjoy doing. Since I was eighteen I've been working as a bookkeeper but soon my spouse and I will begin our own company. Mississippi is where his house is.<br><br>Feel free to visit my website; [http://alles-herunterladen.de/excellent-advice-for-picking-the-ideal-hobby/ email psychic readings] |
| {{refimprove|date=December 2009}}
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| Throughput is the movement of inputs and outputs through a production process. Without access to and assurance of a supply of inputs, a successful business enterprise would not be possible.<ref>{{cite book|last=Besanko, Dranove, Shanley, and Schaefer|title=Economics of strategy, 5th ed.|year=2010|publisher=Wiley}}</ref>
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| In the business management [[Theory of Constraints]], '''throughput''' is the rate at which a [[system]] achieves its goal. Often this is monetary revenue and is in contrast to '''output''', which is inventory that may be sold or stored in a warehouse. In this case '''throughput''' is measured by revenue received (or not) at the point of sale—exactly the right time. Output that becomes part of the [[inventory]] in a warehouse may mislead investors or others about the organizations condition by inflating the apparent value of its assets. The [[Theory of Constraints]] and [[throughput accounting]] explicitly avoid that trap.
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| Throughput can be best described as the rate at which a system generates its products / services per unit of time. Businesses often measure their throughput using a mathematical equation known as Little's Law, which is related to inventories and [[process time]]: time to fully process a single product.
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| Using Little's Law, one can calculate throughput with the equation:<br />
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| <math>I=R*T</math>, <br />where ''I'' is the number of units contained within the system, Inventory; ''T'' is the time it takes for all the inventory to go through the process, Flow Time; and ''R'' is the rate at which the process is delivering throughput, Flow Rate or Throughput. If you solve for ''R'', you will get:<br />
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| <math>R=I/T</math>
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| ==References==
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| {{reflist}}
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| ==External links==
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| *Goldratt, Eliyahu and Jeff Cox. The Goal. Croton-on-Hudson: North River Press, 2004.
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| [[Category:Process management]]
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| {{Business-term-stub}}
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Latest revision as of 16:09, 14 June 2014
Andera is what you can call her but she never really favored that name. To climb is some thing I truly enjoy doing. Since I was eighteen I've been working as a bookkeeper but soon my spouse and I will begin our own company. Mississippi is where his house is.
Feel free to visit my website; email psychic readings