Logistics & Supply Chain
Basic

Throughput

Rate at which a facility produces or moves goods.

Formula

TH=unitstimeTH = \frac{units}{time}

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Variables

THThroughput
unitsUnits processed
timeTime period

Example

4800 units in 8 h: TH = 600/h

How it works

Throughput tells you how many units a process handles per unit of time, so it is a rate. The formula works because dividing a total count of units by the time taken converts a whole-job total into a per-hour, per-minute, or per-day performance measure. In logistics, that helps compare facilities, shifts, or process changes even when the batch sizes are different.

When to use it

Use this when you want to measure the output speed of a warehouse, production line, loading dock, or shipping process. It is useful for comparing capacity, spotting bottlenecks, and checking whether a target output rate is being met.

Worked example, step by step

A packing station processes 1,260 parcels in 7 hours. TH = units / time TH = 1,260 / 7 TH = 180 parcels per hour Final answer: 180 parcels/h

Common mistakes to avoid

  • Using the wrong time unit and forgetting to label the rate consistently
  • Dividing time by units instead of units by time
  • Mixing completed units with items started, which can overstate true throughput

Did You Know?

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

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Reviewed & maintained by the FormulaWon editorial teamLast reviewed September 2026