Economics is no different. Economists use many abbreviations. One of the most common is GDP, which stands for gross domestic product. It is often cited in newspapers, on the television news, and in reports by governments, central banks, and the business community.
The throughput, denoted byTH, is the averageoutput per unit time, e.g., number of widgets per hour. The inventory between the start and the end points of a production. system (not counting crib inventory or ï¬nished goods inventory) is called work-in-process (WIP). The cycle time (CT) of a given production system is the average time parts spend as WIP. The bottleneck rate rb is the rate of the process center having least long-term capacity. The raw. processing time To is the sum of the long-run average processing times of each workstation in the. routing.
The company receives the order instantly, and delivers the product on November 10. He actually starts working on the product only from the 8. Therefore, the Lead Time here is 4 days, while the Cycle Time is 2 days. Lead time is representative of the ime that is expended - but not the effort. You could have a Lead Time is 25 days and yet spend only 2 hours working to solve the problem at hand.