Final answer:
A bottleneck refers to a point in a process or system where the flow or capacity is limited. In the context of capacity, it occurs when a specific resource or component cannot handle the same level of output as other parts, leading to a decrease in overall capacity.
Step-by-step explanation:
A bottleneck refers to a point in a process or system where the flow or capacity is limited. It acts as a constraint that slows down the overall performance of the system. In the context of capacity, a bottleneck occurs when a specific resource or component cannot handle the same level of output as other parts, leading to a decrease in overall capacity.
For example, if a factory has a machine that can produce 100 units per hour, but the packaging station can only handle 50 units per hour, the packaging station becomes the bottleneck, limiting the overall capacity of the factory to 50 units per hour.