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Definition
| production volume of a manufacturer over a certain time period determined by resources |
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Definition
| Short term ex have overtime, increase number of on call workers, Long term ex construct a new plant, expand number of branches |
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Definition
| average unit cost of a good decreases as the volume of sales increases |
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Term
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Definition
| average cost of a good increases as the volume of sales increases |
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Term
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Definition
| to achieve economies of scale without extensive investments by focusing on narrow range of goods or target market segments |
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Term
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Definition
| aka Capacity Cushion, is the amount of capacity reserved for unanticipated events |
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Term
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Definition
| Percent = 100% - Average resource utilization % |
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Term
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Definition
| seasonal products should have complementary products to sell during off seasons |
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Term
| Short term capacity adjustments |
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Definition
| change labor capacity and schedules, hire more/overtime |
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Term
| TOC (Theory of Constraints) |
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Definition
| principles used to increase total process maximization by constantly using all bottleneck stations |
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Definition
| amount of money generated per time period in sales |
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Term
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Definition
| anything that limits an organization from moving forward |
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Definition
| associated with the capacity ex machine or employee |
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Term
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Definition
| limits capacity for entire process of a product |
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