Match the following to the correct descriptions$/$definitionsCapacity utilization rateAnswer $1$Choose...The output that a system is capable of achieving over a period of time.Idea that as the plant gets larger and volume increases, the average cost per unit drops. At some point, the plant gets too large and cost per unit increases.Measure of how close the firms current output rate is to its best operating level $($percent$).$A facility designed around a limited set of production objectives. Typically, the focus would relate to a specific product or product group.The level of capacity for which the process was designed and the volume of output at which average unit cost is minimized.Finding the overall capacity level of capital$-$intensive resources to best support the firms long$-$term strategy.An area in a larger facility that is dedicated to a specific production objective $($for example, product group$).$ This can be used to operationalize the focused factory concept.CapacityAnswer $2$Choose...The output that a system is capable of achieving over a period of time.Idea that as the plant gets larger and volume increases, the average cost per unit drops. At some point, the plant gets too large and cost per unit increases.Measure of how close the firms current output rate is to its best operating level $($percent$).$A facility designed around a limited set of production objectives. Typically, the focus would relate to a specific product or product group.The level of capacity for which the process was designed and the volume of output at which average unit cost is minimized.Finding the overall capacity level of capital$-$intensive resources to best support the firms long$-$term strategy.An area in a larger facility that is dedicated to a specific production objective $($for example, product group$).$ This can be used to operationalize the focused factory concept.Best operating levelAnswer $3$Choose...The output that a system is capable of achieving over a period of time.Idea that as the plant gets larger and volume increases, the average cost per unit drops. At some point, the plant gets too large and cost per unit increases.Measure of how close the firms current output rate is to its best operating level $($percent$).$A facility designed around a limited set of production objectives. Typically, the focus would relate to a specific product or product group.The level of capacity for which the process was designed and the volume of output at which average unit cost is minimized.Finding the overall capacity level of capital$-$intensive resources to best support the firms long$-$term strategy.An area in a larger facility that is dedicated to a specific production objective $($for example, product group$).$ This can be used to operationalize the focused factory concept.Strategic capacity planningChoose...The output that a system is capable of achieving over a period of time.Idea that as the plant gets larger and volume increases, the average cost per unit drops. At some point, the plant gets too large and cost per unit increases.Measure of how close the firm's current output rate is to its best operating level $($percent$).$A facility designed around a limited set of production objectives. Typically, the focus would relate to a specific product or product group.The level of capacity for which the process was designed and the volume of output at which average unit cost is minimized.