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Chapter 4: Q4PE (page 650)

Goldratt argues that, rather than capacity, this should be balanced.

Short Answer

Expert verified

Flow.

Step by step solution

01

Define capacity

Capacity is referred to as the highest output level that an organization can sustain for producing a product or offering a service.

02

Analyze

Goldratt argued that it is important for organizations to balance the flow instead of capacity. It is important to balance the flow because it will help balance the capacity and demand, as both of these aspects depend on flow.

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