3.1 Capacity refers to the maximum output of a system in a given period. It is normally expressed as a rate, such as the number of products that can be produced in a day, week or month. Capacity can also be measured in terms of beds (in a hospital) or active members in a church, amongst others. Most organizations operate their facilities at rates of less than their maximum output. Using appropriate examples, identify the factors that determine effective capacity.

3.2 The design capacity for the above business is 150 units per day. The effective capacity is 95 and the actual output is 82. Calculate the:

3.2.1 Utilization and efficiency of the business. (5

3.2.2 If the efficiency for next month is expected to be 85%, determine the expected output