Input Measures of Capacity: Input m

Input Measures of Capacity: Input measures are generally used for low-volume, flexible processes, such as those associated with a custom furniture maker. In this case, the furniture maker might measure capacity in terms of inputs such as number of workstations or number of workers. The problem with input measures is that demand is invariably expressed as an output rate. If the furniture maker wants to keep up with demand, he or she must convert the business’s annual demand for furniture into labor hours and number of employees required to fulfill those hours. We will explain precisely how this input–output conversion is done later in the chapter.