Throughput (business)
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Image:Throughput.png
Explanation of the concept of Throughput in Theory of Constraints.
In the business management theory of constraints, throughput is the rate at which a system produces money, in contrast to output, which may be sold or stored in a warehouse. The signal provided by throughput is 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 organization's condition by inflating the apparent value of its assets. The theory of constraints and throughput accounting explicitly avoid that trap.
