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. (15)

Mark Allocation: Theory 5 Use of examples - 10