What is production capacity?

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In both the industrial sector and the service industry, production capacity is a central concept. It represents the maximum quantity that can be produced by an entity. It is linked to the resources, assets, and means used to produce goods or services.
Various indicators are used to manage it, such as capacity measurement, utilization rate, and efficiency.
Different levers can be activated to manage capacity — either by acting directly on it or by adjusting demand.

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