Logistics & Supply Chain

Basic

Throughput

Rate at which a facility produces or moves goods.

Formula

TH = \frac{units}{time}

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Variables

THThroughput

unitsUnits processed

timeTime period

Example

4800 units in 8 h: TH = 600/h

Did You Know?

A warehouse's slowest station sets its throughput — the bottleneck governs the whole line.

logistics throughput warehouse

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More in Logistics & Supply Chain

Economic Order Quantity

Order size that minimises the combined cost of ordering and holding stock.

Reorder Point

Stock level that triggers a new order, covering demand during the lead time.

Safety Stock

Buffer inventory that absorbs demand variability during lead time.

Inventory Turnover

How many times inventory is sold and replaced in a period.

Days Inventory Outstanding

Average number of days stock sits before being sold.

Little's Law

Average items in a system equals arrival rate times average time in the system.