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These measurements are throughput, inventory and operational expense. According to Goldratt, these are defined as follows. "Throughput is the rate at which the system generates money through sales."; "Inventory is all the money that the system has invested in purchasing things which it intends to sell"; and "Operational expense is all the money the system spends in order to turn inventory into throughput" (Goldratt 60-61).
The balanced plant concept is a mistake that managers have been trying to achieve for years. Efficiency ratios do not increase sales. There are dependant and statistical variables that impact the way the plant should be running...
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