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Capacity Utilization

German Translation

Kapazitätsauslastung, Kapazitätsausnutzungsgrad

Category

Integration Management with SAP R/3

Short Description

Capacity utilisation, or operating rate, indicates to what extent the capacity of a machine or plant (or even of the economy as a whole) is used. An operational definition of this concept would be: actual output (per unit of time) expressed as a percentage of capacity. A factory, for example, could be working at 30% of capacity, which means it is producing only 30% of its potential maximum output. If its capacity is fully utilised, the factory is said to be working at full capacity, or to capacity. Capacity utilisation is a very important ratio, since it determines, among other things, the fixed cost per unit of output. Quelle: Handbook of Business English, Obenaus/Weidacher (1990), S. 56