Which of the following statements about theoretical capacity is BEST?
A)Theoretical capacity allows adjustments for preventive maintenance.
B)Running a factory at this level for a short time is often better than permanently raising resource levels.
C)Theoretical capacity levels are usually lower than rated capacity levels.
D)Theoretical capacity levels take into account that machines occasionally break and that workers occasionally call in sick.

Question

Quizplus · Accepted Answer

Theoretical capacity refers to the maximum output capability, assuming full efficiency and no downtime. It does not account for maintenance or other disruptions, making it higher than rated capacity. Running at theoretical capacity for short periods can be beneficial without needing permanent resource increases.

Which of the Following Statements About Theoretical Capacity Is BEST