CPIM Practice Exam

What is the term for the rate at which the system generates "goal units"?

1. Throughput

2. Cycle time

3. Constraint

4. Bottleneck

The correct answer is: Throughput

The term used to describe the rate at which a system generates "goal units" is throughput. Throughput refers to the number of units produced or delivered in a given period of time. It is a key performance measure in supply chain and operations management, as it directly relates to the efficiency of a production process and impacts overall profitability. Maximizing throughput is essential for achieving business objectives. Cycle time, while related to production processes, measures the total time taken to produce one unit or to complete a process from start to finish, not specifically the generation of goal units. Constraints refer to factors that limit the performance of a system, such as resources or capacity, and do not directly measure output. Similarly, a bottleneck signifies a stage in the production process that causes delay and limits overall throughput, but it is not a measure of the rate of output itself.