| Best operating level | The level of capacity for which the process was designed and the volume of output at which average unit cost is minimized.
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| Capacity | The amount of output that a system is capable of achieving over a specific period of time.
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| Capacity cushion | Capacity in excess of expected demand.
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| Capacity focus | Can be operationalized through the plants-within-plants concept, where a plant has several suborganizations specialized for different products—even though they are under the same roof. This permits finding the best operating level for each suborganization.
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| Capacity utilization rate | Measures how close a firm is to its best operating level.
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| Economies of scope | Exist when multiple products can be produced at a lower cost in combination than they can separately.
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| Strategic capacity planning | Determining the overall capacity level of capital-intensive resources that best supports the company's long-range competitive strategy.
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