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MGT613 Design Capacity, Buffer capacity

1. Design capacity
Maximum output rate or service capacity an operation, process or facility is designed for.
2.Effective capacity
·Design capacity minus allowances such as personal time, maintenance and scrap.
3.Actual output
·Rate of output actually achieved.
·Cannot exceed effective capacity.
·Capacity Cushion or Buffer is the difference between  Designed and Utilized Capacity.


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