What Is the Throughput Formula? The throughput efficiency formula can be calculated more than one way, but the general formula is I = R * T. In other words, Inventory = Rate multiplied by Time, where “rate” is the throughput.
What is the throughput rate?
Throughput (also known as the flow rate) is a measure of a business process flow rate. Essentially, it measures the movements of inputs and outputs within the production process. It is an important metric in the operations management of a company.
Why is throughput calculated?
Throughput rate calculations can help a business determine the rate at which deliverables reach consumers. Sometimes referred to as flow rate, this information can help a business make knowledgeable decisions about the production process from investment to production to revenue.
What is throughput per hour?
Throughput is the number of units that can be produced by a production process within a certain period of time. For example, if 800 units can be produced during an eight-hour shift, then the production process generates throughput of 100 units per hour.