IGNOU MS 5 2011 - Define capacity. Discuss the process of capacity planning for any indu

Question

Define capacity. Discuss the process of capacity planning for any industry.

01 Nov 2017

Answer :

Word Count : 295

Capacity is the limiting capability of a productive unit to produce within a stated time period, normally expressed in terms of output in units per unit of time. However, the limiting capability also depends on the intensiveness of use; the capacity of a productive unit can be increased without really building new capacity.

The process of capacity planning for any industry generally involves the following steps.

Any capacity plan that is prepared is heavily dependent on the assessment of the likely demand of outputs. If a productive unit is producing many outputs i.e., intensive

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