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Plant capacity is the maximum amount of production for a specific production facility.

Line balancing occurs within a plant with multiple production lines. Resources may be moved between production lines in order to achieve the right mix of finished products. For example, for each car body produced other lines may produce four wheels, two seats, two tail lights, etc. so that final assembly will have available the right mix of parts. Producing extra doors, for example, will not increase total plant output for the day and may result in storage problems which line balancing would have prevented.

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