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Supply Capacity (Business)

Supply capacity refers to the maximum level of output that a company can produce and deliver within a specific time frame. It is determined by a variety of factors, such as the availability of raw materials, the efficiency of production processes, the availability of labor, and the capacity of the company's facilities.

A company's supply capacity is a key factor in its ability to meet customer demand and maintain a competitive advantage. It is often measured in units of output per unit of time (e.g., units per day, units per week, etc.). Companies often aim to increase their supply capacity over time through investments in technology, automation, and process improvements to increase efficiency and productivity.

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