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what are references to support the following - Design capacity: This refers to the capacity that the firm can achieve when there are ideal conditions
what are references to support the following - Design capacity: This refers to the capacity that the firm can achieve when there are ideal conditions in the firm. This kind of capacity my not be achieved because there are many challenges that are facing entities in the daily operations. Many of these factors may be out the control of the management of the business. An example of design capacity - The batch production line of a bakery can produce 12,000 loaves of bread an hour on a fully staffed shift. Effective capacity: The effective capacity is that kind of capacity that is achieved by a company with the current constraints in their operations. The effective capacity is therefore key in understanding the capacity that the company can achieve with all of the issues that it is facing in the course of operations. An example of effective capacity - A flight has an effective capacity of 220 passengers based on the design of the aircraft and availability of staff and inputs such as fuel. The effective capacity is the most important to measure because it is shows the capacity that a company can achieve with all forms of challenges that are
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