A note from Sary

Dollar throughput is a measure of how fast your overall business system creates a dollar of profit. Assume a standard time unit, like an hour/day/ week/month--how many dollars does your business system produce on average during that time? The faster your business produces dollars of profit, the better. Production throughput is a measure of how much time it takes to create an additional unit for sale. How long does it take to go from raw materials to a finished item rolling off the production line? The faster the production throughput, the more items you'll have available to sell and the faster you'll be able to respond to new demand for those items.

Sary The Personal MBA, page 156 · October 26, 2023 Save to shelf
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