Throughput (business)

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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.

[edit] See also

• Eliyahu M. Goldratt