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What is the difference between balancing capacity and balancing flow in a supply chain process?

User Korbes
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Final answer:

Balancing capacity and balancing flow are two important concepts in supply chain management that focus on resource allocation and smooth movement of goods.

Step-by-step explanation:

In supply chain management, balancing capacity refers to the ability of a supply chain process to allocate resources in a way that meets demand and prevents bottlenecks or overcapacity.

On the other hand, balancing flow refers to the smooth movement of goods, information, and services throughout the supply chain, ensuring that there are no disruptions or delays.

For example, let's say a company has a high capacity to produce goods but has poor flow management. This means that although they have the ability to produce a large quantity of goods, there may be delays in delivering these goods to customers, resulting in customer dissatisfaction.

User Dima Deplov
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