123 - The traditional definition of throughput is...

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Unformatted text preview: The traditional definition of throughput is productivity of a machine, procedure, process, or system over a unit period. In The Goal , the definition of throughput is the rate at which the system generates money through Sales . This measurement would consist of what a product would be worth when sold at market value after deducting operational expense and inventory. Compared to traditional definition, it translates productivity in to sales in the market and things are represented by money. The traditional meaning of inventory is the raw materials, work-in- process goods and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale. In this book, it means all the money that the system has invested in purchasing things which it intends to sell. This could include the remains of their machines after being used toward the investment. It also presents value by money instead of materials, goods or other things. The traditional definition of operational expense is a value by money instead of materials, goods or other things....
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