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Excess Capacity Holding Cost

Purpose -

Tracks the cost incurred due to maintaining unused production capacity.

Operational Definition -

Total Cost of Unused Production Capacity

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Lower the better

Recommended Frequency - 

Monthly

External References -

https://www.ibm.com/topics/demand-planning

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