The formula to calculate the Business Capacity (BC) is:
\[ \text{BC} = \frac{\text{CO}}{\left(\frac{\text{UR}}{100}\right)} \]
Where:
Let's say the current output (CO) is 500 units and the utilization rate (UR) is 80%. Using the formula:
\[ \text{BC} = \frac{500}{\left(\frac{80}{100}\right)} = 625 \, \text{units} \]
So, the business capacity is 625 units.
Definition: Capacity calculation involves determining the maximum output or load that a system can handle.
Formula: \( C = \frac{W}{T} \)
Example: \( C = \frac{500}{10} \)
Definition: Capacity utilization measures the extent to which a business uses its potential output capacity.
Formula: \( CU = \frac{AO}{PO} \times 100 \)
Example: \( CU = \frac{8000}{10000} \times 100 \)
Definition: Design capacity is the maximum output that a system is designed to achieve under ideal conditions.
Formula: \( DC = \frac{AO}{EC} \times 100 \)
Example: \( DC = \frac{25000}{28000} \times 100 \)
Definition: Capacity planning involves determining the production capacity needed by an organization to meet changing demands for its products.
Formula: \( CP = \frac{D}{P} \)
Example: \( CP = \frac{1000}{50} \)
