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How is capacity like the size of the hoses and tub?

How is capacity like the size of the hoses and tub in which water is flowing. Consider that there may be multiple tubs and hoses in a manufacturing business, as well as in other businesses. What role does customer demand play in capacity planning? Why is it necessary to do both short term and long term planning? What role does Line Balancing (bottleneck elimination) play in capacity. How are capacity, production, demand, and inventory related?

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How is capacity like the size of the hoses and tub in which water is flowing. Consider that there may be multiple tubs and hoses in a manufacturing business, as well as in other businesses.

Capacity is the maximum capability of the manufacturing process or the assembly line. The assembly line cannot product more goods that the determined capacity. For example, if the capacity of the assembly line is 36 sec., then this particular assembly line can produce a maximum of 100 (3600/36) parts per hour. Likewise, the size of the hoses and tub in which water is flowing can only carry a certain amount of water at any given time. Thus, hoses and tubs also have the maximum capability or capacity.

What role does customer demand play in capacity planning? ...

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