![]() ![]() Operational Expense: All the money the system spends in order to turn inventory into throughput. Inventory: All the money that the system has invested in purchasing things which it intends to sell. Note that the money is generated through sales and not production because if you produce something and don’t sell it, you have not really had throughput.Return on Investment (ROI) For a manufacturing enterprise, the goal can also be measured by ĭefinitions Throughput: The rate at which the system generates money through sales.Holt, Ph.D., PE Associate Professor Engineering Management Constraints Management Intro to the Theory of Constraints (A lecture introducing a portion of the Physical side of the Theory of Constraints) James R.
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