- Throughput (business)
In the business management
Theory of Constraints, throughput is the rate at which a systemachieves 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 inventoryin a warehouse may mislead investors or others about the organizations condition by inflating the apparent value of its assets. The Theory of Constraintsand throughput accountingexplicitly avoid that trap.
Eliyahu M. Goldratt
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