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Q-1. Distinguish between design capacity and effective capacity.

Q-2. What is effective capacity?

Q-3. What is efficiency?

Q-4. Distinguish between effective capacity and actual output.

Q-5. Explain why doubling the capacity of a bottleneck may not double the system capacity.

Q-6. Distinguish between bottleneck time and throughput time.

Q-7. What is the theory of constraints?

Q-8. What are the assumptions of break-even analysis?

Q-9. What keeps plotted revenue data from falling on a straight line in a break-even analysis?

Q-10. Under what conditions would a firm want its capacity to lag demand? to lead demand?

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