How is process selection related to product design and capacity determination?
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2. Decision tree
3. Break-even analysis
Capacity: amount of goods that a firm is capable of producing
over a specified period of time
Capacity planning: to specify the level of capacity (output rate)
that will meet market demands in a cost-efficient way
Factors affecting capacity
1. External factors: government regulations, union agreements
2. Internal factors: product design, plant layout, process flow
Process -- activities involved in making a product
Types of processes
Two types of nodes
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