Production capacity refers to the maximum volume of goods or services a company can produce within a defined period under given technical, human, and organizational conditions. It is determined by the interaction of production facilities, workforce, working hours, material availability, and technological and logistical requirements. Managing production capacity is a key aspect of production management, as it directly affects delivery performance, cost efficiency, and competitiveness. A balanced utilization of production capacity enables companies to respond flexibly to demand fluctuations, avoid bottlenecks, and use resources efficiently.
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Explanation: Production Capacity
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