bottleneck operation | An operation in a sequence of operations whose capacity is lower than that of the other operations.
|
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
break-even point (BEP) | The volume of output at which total cost and total revenue are equal.
|
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
capacity | The upper limit or ceiling on the load that an operating unit can handle.
|
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
capacity cushion | Extra capacity used to offset demand uncertainty.
|
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
cash flow | The difference between cash received from sales and other sources, and cash outflow for labor, material, overhead, and taxes.
|
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
constraint | Something that limits the performance of a process or system in achieving its goals.
|
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
design capacity | The maximum designed service capacity or output rate.
|
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
diseconomies of scale | If the output rate is more than the optimal level, increasing the output rate results in increasing average unit costs.
|
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
economies of scale | If the output rate is less than the optimal level, increasing the output rate results in decreasing average unit costs.
|
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
effective capacity | Design capacity minus personal and other allowances.
|
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
indifference point | The quantity that would make two alternatives equivalent.
|
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
![](/olcweb/styles/shared/spacer.gif) |
present value | The sum, in current value, of all future cash flows of an investment proposal.
|