Differences Management Supply Chain

Difference Between Effective Capacity and Actual Capacity

effective capacity and actual capacity

This is one of the most widely asked questions in Supply Chain Management. The difference between effective capacity and actual capacity;

Effective capacity:

Effective capacity is the maximum rate of output that can be achieved under operating constraints.
Always lower than design capacity.

Actual capacity:

The maximum output rate is actually achieved under the constraints of machine breakdowns, labor inefficiencies, and absenteeism.
Always lower than effective capacity.

Tuts

About Author

Tutsmaster.org provides tutorials related to tech and programmings. We are also setting up a community for the users and students.

You may also like

Difference Between Microprocessor and Microcontroller
Differences

Difference Between Microprocessor and Microcontroller

  • July 18, 2019
What is Microprocessor? A microprocessor is an electronic component that is used by a computer to do its work. It is a
Difference Between Array and Union in C
C Programming C++ Programming Differences

Difference Between Array and Union in C

  • July 21, 2019
What is an Array? An array is a collection of data items, all of the same types, accessed using a common name.