Throughput
Also known as: Processing Throughput, Warehouse Throughput, Order Throughput
Definition
Throughput is a measure of the quantity of work completed within a specific time period. In logistics, it typically refers to the number of orders, units, cases, or pallets processed through a warehouse or fulfillment operation.
Common Throughput Measures
| Measure | Unit | Use Case |
|---|---|---|
| Orders per hour | Orders/hr | E-commerce fulfillment |
| Units per hour | Units/hr | Pick productivity |
| Cases per hour | Cases/hr | Distribution centers |
| Pallets per day | Pallets/day | Warehouse receiving |
| Lines per hour | Lines/hr | Picking operations |
Calculating Throughput
Throughput = Units Processed ÷ Time Period
Example:
- 500 orders processed
- 8-hour shift
- Throughput = 62.5 orders/hour
Throughput by Operation
| Operation | Typical Measure |
|---|---|
| Receiving | Pallets/hour, cartons/hour |
| Put-away | Pallets/hour |
| Picking | Units/hour, lines/hour |
| Packing | Orders/hour |
| Shipping | Packages/hour |
Factors Affecting Throughput
Increase Throughput
- Better processes/workflows
- Automation technology
- Staff training
- Improved slotting
- Reduced travel time
Decrease Throughput
- Complex orders
- Product mix changes
- Equipment failures
- Staff shortages
- Quality issues
Throughput Planning
Capacity Planning
- Throughput defines capacity
- Plan staffing to throughput requirements
- Scale equipment to volume needs
Peak Planning
- Throughput requirements increase during peaks
- May need temporary labor/equipment
- Build contingency into plans
Throughput vs. Cycle Time
| Throughput | Cycle Time |
|---|---|
| How many completed | How long each takes |
| Volume metric | Time metric |
| System-level view | Individual task view |
| Orders/hour | Minutes/order |
Improving Throughput
- Analyze current bottlenecks
- Streamline workflows
- Implement automation
- Optimize labor allocation
- Improve equipment utilization
- Reduce non-productive time
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