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Investments glossary

Bottleneck

A bottleneck is a point of congestion in a production system (such as an assembly line or a computer network) that occurs when workloads arrive too quickly for the production process to handle. The inefficiencies brought about by the bottleneck often create delays and higher production costs. The term bottleneck refers to the typical shape of a bottle, and the fact that the bottle’s neck is the narrowest point, which is the most likely place for congestion to occur, slowing down the flow of liquid from the bottle.

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