what is capacity

Capacity refers to the ability to hold or contain something. It can also refer to the largest amount or number that can be contained. In mathematics, capacity is defined as the maximum quantity a container can hold when full. There are two types of capacity measurement: metric measurement and customary measurement. The standard units to measure capacity are liters and milliliters. In the context of a company, capacity is the maximum level of output that a company can sustain to make a product or provide a service. Planning for capacity requires management to accept limitations on the production process. Depending on the business type, capacity can refer to a production process, human resources allocation, technical thresholds, or several other related concepts.