Working Papers
Year
1992
Abstract
Capacity decisions are not well documented. The optimal capacity of a process minimizes the sum of over and under capacity costs. But, the adjustment between capacities and needs takes time and capacity procurement is usually done by indivisible increments. These considerations lead to the definition of three concepts : anticipated overcapacity, structural overcapacity, and strategic or preempted overcapacity.
TARONDEAU, J.C. (1992). Le choix de capacité d’un processus industriel. ESSEC Business School.