Companies with strong prospects for future growth face the related challenge of finding the additional capacity to meet increasing future demand. Traditionally, companies first considered capital improvements to increase or de-bottleneck existing capacity. Since these projects could require seven or eight-figure budgets and extended lead times, a near term option might be to contract for additional capacity even though this consumes a good part of any future revenue increases.
How Supply Chain Optimization Increased Throughput
Finding capacity to meet future demand