Effective capacity is the:
A) maximum output of a system in a given period.
B) capacity a firm expects to achieve given the current operating constraints.
C) average output that can be achieved under ideal conditions.
D) minimum usable capacity of a particular facility.
E) sum of all of the organization's inputs.

Question

Quizplus · Accepted Answer

Effective capacity refers to the capacity a firm expects to achieve under current operating conditions, taking into account normal delays, maintenance, and other routine disruptions. It is a realistic assessment of what a system can produce in a typical, real-world scenario, as opposed to the maximum or ideal capacity.

Effective Capacity Is The