An examination of fundamental concepts in measuring the performance of logistics systems and their possible application to management problems. The author compares some of the general categories of industrial capacity concepts to the fundamental parameters of logistics systems capacity. A performance model of a simple logistics system is developed, and the capacity parameters are calculated and applied to typical management problems. The study finds that logistics system capacity is useful for performance models and consistent with definitions of industrial capacity, and that it provides managers and management analysts with simple tools for assessing logistics system performance and for acquiring clear inputs to determine system effectiveness.
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