Define the resources over and under capacity, Operation Management

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Define the resources over and under capacity.

The resources over and under capacity:

a. Over capacity: it is also called as spare capacity resources for example, staff and machines are not being totally utilised (as idle) and not operating at complete capacity.

b. Under capacity, there customer demand is higher than the maximum capacity or supply the organisation can fulfil for example, full order book, waiting lists and customer queuing.

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