Thorughput

[Asif]

can ne1 explain me how inventory decrease the throughput ratio ??

Please explain clearly by breaking the formulas into smaller nd show me how the inventory level actually effects the ratio.

Authors, student ?? please help

[dragoon_alex]

I think TRAP is not useually to account inventory. Because Throughtput = revenue - raw material.
Therefore it is an advanced costing method, which suitable for modern industory, because of labour cost and varable cost are very close. This method focus on raw material, and ignore other cost and account to all fixed cost.

TRAP = throughtput per hour of bottleneck / operating per hour of bottlenck

[Asif]

Thxx dragon