surplus capacity
/sɜːrˈplʌs kæpəsɪti/ · surplus.cap.a.cit.y
noun
- The amount of capacity that exceeds immediate demand, often resulting in idle resources or equipment. The factory had a surplus capacity of 20% due to the recent decline in orders.
noun
- A situation where a system or process has more capacity than is currently being utilized. The airline's surplus capacity during the off-season allowed them to offer discounted fares to passengers.
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Did you know? The concept of surplus capacity is crucial in supply chain management, as it can affect the efficiency and profitability of businesses. Companies often strive to balance their capacity with demand to minimize waste and maximize productivity.