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.
Additionally, there is the concept of Cycles.. Cycles in effect put a limit on the total amount of time a driver can be on duty in a given period before he must take time off. Cycle 1 is 70 hours in a 7-day period, and cycle 2 is 120 hours in a 14-day period.