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Gratitude And Love   13 April 2021

Measures used in the Theory of Constraints.

Why Raw Material Stock consider in Investment key measure instead of Throughput Contribution measure ?

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yasaswi gomes

yasaswi gomes (My grammar is 💯 good I)     13 April 2021

Throughput contribution is the difference between revenues and direct material costs for the units sold and this is profitability analysis. While Raw material, WIP & finished goods are held under assets and the buyer of the company looks up if he has a negative or positive net worth before purchasing that company.

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