Question 1
What is sometimes referred to as rated capacity?
◦ design capacity
◦ effective capacity
◦ expected output
◦ efficiency
◦ utilization
Question 2
Effective capacity is the
◦ minimum usable capacity of a particular facility.
◦ sum of all of the organization's inputs.
◦ capacity a firm expects to achieve given the current operating constraints.
◦ maximum output of a system in a given period.
◦ average output that can be achieved under ideal conditions.