Introduction
In the operation of a system, organization or machine, the extent of success lies in its ability to produce the highest possible results within a specified period of time (Boyer & Verman, 2009). This effectiveness focuses on the capacity which is the quality of work done in a defined period of time. This paper explores the differences between peak capacity and effective capacity in relation to production levels. It weighs the various strengths and weaknesses presented by each capacity. A case study of capacity cushions for airlines explores both concepts according to Sasaki (2008). It also expresses how the two capacities can complement ...
