Throughput

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November 2, 2020 at 2:04 am #593793
Nikitagarwal
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Hello sir,
Greetings of the day 🙂

I just need to clarify one thing , in throughput we assume that minimum inventories are held right ? we do not assume no inventories are held.. As per my understanding we use JIT for this right?
November 2, 2020 at 8:56 am #593815
John Moffat
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In a perfect world we assume no inventories are held (which is as with JIT). In the real world for both throughput and JIT, inventories are kept to an absolute minimum.
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