Throughput is the amount of work a system actually completes in a period, such as pallets received per hour, orders shipped per day or pallets built per shift. In a warehouse it measures how much flows through the building, as distinct from how much is stored.
Measuring throughput
Pick a unit that matches the process: pallets in and out for a cross dock, cases or lines picked for fulfillment, pallets built for a pallet mill. Track it per hour and per shift, and alongside labor hours, so you can see both output and productivity.
What limits it
The slowest step sets throughput for the whole flow. Common constraints are dock doors, lift truck capacity, pick faces, wrapping and labeling stations, and trailer availability. Improving a step that is not the constraint adds little. Comparing each step's capacity with takt time highlights the bottleneck.
Pallet effects
Consistent, sound pallets and stable unit loads keep automated equipment and lift trucks moving. Broken pallets, mixed footprints and loads that must be restacked cut throughput at receiving and in automated systems such as AS/RS.
Related Terms
- Takt Time
- Pallet Velocity
- Dock Utilization
- Cross-Docking
- ASRS
- Order Fulfillment
- Distribution Center
- Rack Utilization
- Browse all glossary terms
Frequently Asked Questions
What is the difference between throughput and capacity?
Capacity is the maximum a system could handle under ideal conditions. Throughput is what it actually handles. A building may have rack capacity for many pallets but limited throughput because of too few dock doors or lift trucks. Planning usually looks at both: storage capacity for inventory and throughput capacity for peak daily volume.
How can a warehouse increase pallet throughput?
Find the constraint first, often dock doors, lift truck availability or an end-of-line station, and address it through scheduling, added equipment, layout changes or process changes. Requiring standard pallets and well built unit loads from suppliers reduces rework at receiving. Slotting fast movers close to the dock shortens travel and raises pallets handled per hour.