DSCI 304 Lecture Notes - Lecture 4: Variable Cost
13 Sep 2016
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Design capacity: maximum output possible for that particular facility ex without fire marshall, how many people do you think we could fit in a room. 38/100 utilization ratio =38% tonight there are 38 people in the room when we could possibly fit in 100 people. Affective capacity: given real world conditions what is the maximum possible ex in real world we want you to have desk chair, be able to see, the affective capacity of the room is 40. Tonight we have 38, 38/40 efficiency ratio =95% Problem is often capacity is measured by design capacity how big a facility we need, has to do with forecast of demand. Strategic long term question, once you get into a spot can expand or contract but may not be as easy as you think. Affect competitiveness how to determine how big of a space you need.
