CAPACITY
Discussion post – 300 words
What is capacity and why is it an important consideration in logistics management? What are the differences between design and effective capacity? If you were an operations manager, how would you bridge the gap between them or do you accept effective capacity as the standard? Be sure to defend your answers.
Answer preview
Capacity measures the number of units possibly produced, held, received or stored by a facility at a given period. Therefore, capacity helps to express the ability of a machine or work center to produce output over a given period, that is, a day or an hour.
Capacity is an essential consideration in logistics management as it assists significantly in matching the sales volume and the technology while predicting and calculating the demand available accurately (Heyl, 2017). Capacity also helps update the firm in any market changes and gets the ideal and optimal…
(300 words)