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The follOwing statements have been made in relation to the concepts outline in throughput
accounting:
(i) Inventory levels should be kept to a minimum
(i) All machines within a factory should be 100% efficient, with no idle time
Which of the above statements is/are correct?I have read about the concepts of throughput accounting in the lecture notes but can’t understand these statements.
We do assume that inventory levels are kept to a minimum.
We do not assume there is no machine idle time – the bottleneck machine will not have idle time, but the other machines will.
Can I get any explanations simple for these assumptions so I can understand?
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