| Article ID: | iaor1995472 |
| Country: | United States |
| Volume: | 34 |
| Issue: | 4 |
| Start Page Number: | 1 |
| End Page Number: | 5 |
| Publication Date: | Dec 1993 |
| Journal: | Production and Inventory Management Journal |
| Authors: | Steele Daniel C., Papke-Shields Karen E. |
If a shop has load variability, adding capacity slack can improve most performance measures. Capacity slack is simply extra capacity. Unfortunately, it is organizationally 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.