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