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Impact of Operating Under or Over Maximum Capacity
What are the consequences of operating under maximum capacity for a business?
Operating under maximum capacity can result in missed business opportunities, reduced productivity, increased unit costs, decreased customer satisfaction, and potential strain on existing resources.
What are the risks and challenges of operating over maximum capacity?
Operating over maximum capacity can lead to risks such as increased stress on equipment or machinery, higher maintenance costs, decreased product quality, increased lead times, decreased flexibility, potential bottlenecks or production delays, and potential negative impacts on employee morale and job satisfaction. It is important to manage capacity effectively to avoid these risks.
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