Imagine the journey of your favorite chocolate bar 🍫 from cocoa beans to the store. That's the supply chain! It's a web of companies, resources, and activities that help a product move from raw materials to your hands. It's like the life journey of your chocolate bar, meeting friends like suppliers, distributors, and customers on the way!

🌍 Real-world example: Think about Apple. They source components from various parts of the world, assemble their iPhones in China, and then ship them out to Apple stores across the globe.

Remember how we pack extra clothes for a vacation, "just in case" the weather changes? Businesses do that too! They keep extra stock of products or raw materials in case there's suddenly a huge demand.

🌍 Real-world example: Toy stores might stock up on a certain toy during the holiday season, fearing a sudden rush of parents looking for the latest trendy toy for their kids.

Imagine you're at a fancy restaurant, and they prepare your dish only when you order it, ensuring it's fresh and hot. JIT is like that for businesses. They produce or get supplies only when there's an order or need.

🌍 Real-world example: Toyota uses this method in its car manufacturing process. This reduces storage costs and ensures parts are fresh and ready!

Think of this as how busy a factory is. If a factory can make 100 toys but is only making 80, its capacity utilization is 80%. It's like seeing how much of your lunchbox you've eaten! 🍱

Formula: (Actual output/Productive capacity) x 100