Question

Define capacity and measures of capacity in operation management

Answer 1

Design of the production system involves planning for the inputs, conversion process and outputs of production operation. The effective management of capacity is the most important responsibility of production management. The objective of capacity management (i.e., planning and control of capacity) is to match the level of operations to the level of demand

Answer 2

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Capacity management affects all areas of an operation. Capacity measures the rate that the operation can transform inputs into outputs. Capacity is about the quantity of a product or service that can be made within a given time period.