Throughput (business)

The goal of most organizations is to minimize the investment in inputs as well as operating expenses while increasing throughput of its production systems.

[1] In the business management theory of constraints, throughput is the rate at which a system achieves its goal.

Oftentimes, this is monetary revenue and is in contrast to output, which is inventory that may be sold or stored in a warehouse.

Output that becomes part of the inventory in a warehouse may mislead investors or others about the organizations condition by inflating the apparent value of its assets.

Throughput can be best described as the rate at which a system generates its products or services per unit of time.