The maximum output of many manufacturing operations is determined primarily by their market. The company can sell only a percentage of the products that the manufacturing plant can produce. Some manufacturing operations, however, have internal limits or constraints on production that are more restrictive than market forces, and more restrictive than the maximum capacity of the rest of the plant. This may be more common in industries that face seasonality or other types of lumpy demand, where demand peaks at a certain time of year or at a certain point in a business cycle.
