Question

1. a. Explain the differences between maximum capacity and effective capacity. b. How would you define the maximum capacity for the front desk of a hotel? What is meant by the effective capacity? Define the difference in these two terms relative to the number of customers that can be checked into the hotel in a given period.

Answer 1

a) Maximum capacity is the maximum output that a business can produce in a given period with the avalilable resources where as Effective capacity is the m,aximum amount of work that an organisation is capable of compleating in a given period due to constrains such as quality problems delays ,materia handling etc .

b)The maximum capacity in the front desk of hotel it can be measured in terms of numbers of customers that sit or checked into the hotel.Or can be defined as the number of customers handled or served by the front desk with in a time limit or time period.

c)Effective capacity is the maximum amount of work that an organisation is capable of completing in a given period due to constraints such as quality problems delays,material handling etc.

d)The maximum capacity is the maximum possible output that a firm can achieve during a production of goods services where as effective capacity is the sustainable amount of output that a firm decides to produce or it is the number of people that stay in the hotel or call for reservation daily when there are no events or festivals.