MARKET 1 Lecture Notes - Lecture 13: Fixed Cost, Poisson Distribution, Learning Curve
Document Summary
The center for disease control and prevention (cdc) is confident that there"s enough vaccine for anyone who wants it. This is because the u. s. domestic drug manufacturers moved quickly to expand vaccine- manufacturing capacity. Capacity [ the capability of a worker, machine, work center, plant, or organization to produce output per time period. ] Managers make decisions on how much capacity their organizations need and what types. Several issues are to be considered : how capacity is measured, which factors affect capacity, the impact of the supply chain on the organization"s effective capacity. Measures of capacity: vary widely, measured in terms of inputs and outputs, for standardized products, capacity is mostly expressed in terms of output, for customized products, capacity is mostly expressed in terms of input. Theoretical capacity [ the maximum output capability, allowing no adjustments for preventive maintenance, unplanned downtime, or the like. ]