Supply Chain Glossary - E

Supply Chain Glossary - E

excess capacity

A situation where the output capabilities at a nonconstraint resource exceed the amount of productive and protective capacity required to achieve a given level of throughput at the constraint. See: idle capacity, productive capacity, protective capacity.

Any inventory in the system that exceeds the minimum amount necessary to achieve the desired throughput rate at the constraint or that exceeds the minimum amount necessary to achieve the desired due date performance. Total inventory = productive inventory + protective inventory + excess inventory.


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