What helps a business to determine it's maximum possible capacity?

[Trush Jodie]

It is very important for a business to know the maximum level of production that it can stretch to. It would help the business with planning and allocation of resources.

How can a business determine the maximum production capacity that it can handle?

 

[Kross]

For some businesses, the physical space available for it to use in terms of size determines the highest possible capacity of the business.

 

[Fire&Rain]

To know maximum production capacity, a business must evaluate its resources, from staff to machinery. Observing current operations, identifying bottlenecks, and reviewing past production records gives a clear picture. Testing higher output levels carefully can also reveal limits. This helps the business plan effectively, allocate resources wisely, and maintain smooth, efficient production without overloading the system.