Dear Sir,
Throughput can increase when a bottleneck resource becomes a non-binding constraint, but our throughput per factory hr wouldn't increase right? It will still remain the same. as our throughput will increase so will the hours so there will be a corresponding change in numerator and denominator at the same time. am i right sir??
with best regards,
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Throughput vs Throughput/hr
5y ago#1No, that is not correct.
The throughput per hour is the throughput (selling price less material cost) per unit divided by the hours per unit. If they are able to produce more then the denominator will increase but the numerator is not changed.
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