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Market competition for a given demand will impose a ruling price-level for a type of output, but the different competing enterprises producing it will take more or less labour to produce it, depending on productivity levels and technologies they use. Consequently, output values produced by different enterprises (in terms of labour-time) and ...
Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. [1] In the context of capacity planning, design capacity is the maximum amount of work that an organization or individual is capable of completing in a given period.
Takt time, or simply takt, is a manufacturing term to describe the required product assembly duration that is needed to match the demand.Often confused with cycle time, takt time is a tool used to design work and it measures the average time interval between the start of production of one unit and the start of production of the next unit when items are produced sequentially.
Conditional on producing the amount of output consistent with, say, the middle isoquant, the lowest cost can be obtained by using amounts of labor and capital such that the point on the given isoquant is on the lowest possible isocost curve—that is, at the point of tangency between the given isoquant and one of the cost curves.
Thus, a standard definition of capacity utilization is the (weighted) average of the ratios between the actual output of firms and the maximum that could be produced per unit of time, with existing plant and equipment (see Johanson 1968). Output could be measured in physical units or in market values, but normally it is measured in market values.
Lead Time vs Turnaround Time: Lead Time is the amount of time, defined by the supplier or service provider, that is required to meet a customer request or demand. [5] Lead-time is basically the time gap between the order placed by the customer and the time when the customer get the final delivery, on the other hand the Turnaround Time is in order to get a job done and deliver the output, once ...
A current ratio can be better understood by looking at how it changes over time. The current ratio is part of what you need to understand when investing in individual stocks, but those investing ...
In this stage, the employment of additional variable inputs increases the output per unit of fixed input but decreases the output per unit of the variable input. The optimum input/output combination for the price-taking firm will be in stage 2, although a firm facing a downward-sloped demand curve might find it most profitable to operate in ...