Capacity is:
A) determined by lean manufacturing.
B) the maximum amount of square footage available for inventory storage in a facility.
C) determined by raw materials flows.
D) the maximum amount of work that an organization is capable of completing in a given period of time.

Question

Quizplus · Accepted Answer

Capacity refers to the maximum amount of work an organization is capable of completing in a given period of time. Lean manufacturing, raw materials flows, and inventory storage square footage may all be factors that affect an organization's capacity, but they are not the definition of capacity itself.

Capacity Is