Understanding Capacity and Capacity Utilization in Business

The video tutorial explains the concept of capacity, using examples like a football stadium and a fish tank. It discusses capacity shortage and underutilization, highlighting their impact on businesses. The capacity utilization equation is introduced, with examples of how to calculate and rearrange it. The importance of balancing capacity to avoid resource wastage or burnout is emphasized. Trends in capacity utilization are analyzed, showing how they can affect business performance over time.

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