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| Author: | Steele, D. C. Papke, K. E. |
| Title: | Capacity slack: strategic alternative to lead time (Kapazitätsplanung; Durchlaufplanung; Durchlaufzeit) |
| Journal: | Production and Inventory Management Journal
1993 : DEC, VOL. 34:4, p. 1-5 |
| Index terms: | |
| Language: | eng |
| Abstract: | If a shop has load variability, adding capacity slack can improve most performance measures. Capacity slack is simply extra capacity. Unfortunately it is orgnizationally easier to increase lead time than capacity. Cost accounting numbers are a further barrier to using capacity. In this article, the effect of capacity slack on lead time and inventory is shown as an important relationship. If taken from a strategic perspective, needed capacity slack can be implemented and key performance areas improved. |
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