Idle Capacity

Idle Capacity

The capacity of a company not currently being used. One calculates idle capacity thusly:

Idle capacity = Capacity / Utilization * 100%

Because idle capacity usually has costs associated with it, companies attempt not to have idle capacity unless the cost of waste (such as unsold products) exceeds the cost of idle capacity.
References in periodicals archive ?
He said the two questions whether the project will add to surplus capacity and whether capacity payments would be made for the idle capacity were important to be examined.
But it has given a concession to these four IPPs by agreeing to pay them idle capacity payments on non-availability of the LNG despite the fact that these power plants can still be run on HSD as dual fuel.
Under take or pay agreement CPPA is bound to purchase all the available electricity from the power plants for idle capacity as well.
451 billion as unjustified payment made for idle capacity of power plants.
Under take or pay agreement CPPA is bound to purchase all available electricity from the power plants for idle capacity as well.
Under take or pay agreement, CPPA is bound to purchase all available electricity from the power plants for idle capacity as well.
The industry has pointed out the reasons for decline in exports that is worrisome as the industry still has idle capacity," the APCMA said.
All Pakistan Textile Mills Association (Aptma) Senior Vice Chairman Zahid Mazhar has urged Prime Minister Nawaz Sharif to announce a textile package for exporters without further delay in order to help increase exports, utilise idle capacity, create jobs and attract investments in the country.
The spokesman for APCMA regretted that despite utilization of around 95 per cent capacity the industry is being accused of not using their idle capacity and of forming a cartel to keep the rates high.
Innova Research expects that the Chinese graphene industry will initialize the shake-out of uncompetitive graphene makers due to a large idle capacity at present.
Al-Fateh Abbas Al-Qurashi said in a working paper he presented to the workshop that the Five-Year Programme aimed at cultivation of 500,000 acres with cotton as part of eight export commodities, unveiling the plan to mobilize the idle capacity to reach 17,000 tons basing on modern technology, pointing out to the importance of stable agricultural policies to recover the national economy, stressing importance of giving concern to the agriculture- based industry to benefit from the competitive advantages in this regard.