Throughput

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

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December 13, 2016 at 8:58 am #363524
gasior
Member
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Dear Mr Moffat,
If we decrease the rent cost of the factory in the next year can the throughput go down?
I am interested if we can analise the throughput for more then one year or it is only analysed in short term decision?
Regards,
Kasia
December 13, 2016 at 6:04 pm #363595
John Moffat
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A lower rent cost will reduce the cost per factory hour, and that will increase the throughput accounting ratio.
You can do it for more than a year, but it is certainly more of a short term measure.
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