ABSTRACT
The notion of capacity, the maximum pace available from the required resources over time, is most easily recognized in manufacturing. Selling tickets at attractive prices at the last minute or accepting a client's urgent request for a very small quantity that uses existing excess capacity definitely and disproportionally helps increase net profit. The most decisive reason why matching capacity with actual demand is impossible comes from the inability to synchronize various forms of variation. Increasing capacity takes time, often a very long time, and can require careful planning. If the preferred approach is to maintain enough capacity for the periods of heavy demand, then it means having to tolerate a lot of excess capacity during market downturns. A potentially significant difficulty in dealing with capacity is understanding the instantaneous and also more prolonged ramifications to the timing of capacity consumption and the flow of products. Theory of Constraints time buffers alleviate the need to respond to temporary capacity shortages.
