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Operational capacity

Operational capacity expresses how much work a defined process can handle with its resources during a stated period. Declare the unit, such as packed orders per shift; floor area alone does not measure order-processing capacity.[1]

Assess the complete flow. Faster picking does not increase dispatch output when packing is already constrained. Distinguish theoretical maximum output from achievable capacity under breaks, interruptions and the actual mix of orders.

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Sources

  1. Logistics Glossary - Inbound Logistics

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