capacity utilization



Extent or level to which the productive capacity of a plant, firm, or country is being used in generation of goods and services. Expressed usually as a percentage, it is computed by dividing the total capacity with the portion being utilized.

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  • The company's CEO stated that we are at least ten percent short of capacity utilization but he thinks that by the end of the year we can cover the gap.

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  • You should try to be great at capacity utilization so that you are always getting the most out of the space you have.

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  • The capacity utilization analysis concluded that there was a more efficient method of operating so we analyzed all variables in the meeting.

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