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 ?
The official said, however, that increased production came as Iran had still 30 percent of idle capacity in the poultry industry.
1.8 trillion, the main causes of which are accumulated arrears inflated power tariff which is being allowed to IPPs and the perpetually accumulating liability of 40o percent idle capacity charges.
Li Zhiliang, chief executive officer of Autek Bio, stated in the 2nd edition of Advances in China's Biopharma that China has over 50% idle capacity in bio-manufacturing while this percentage is below 30% in US/EU.
Delayed payment for land, which stalled completion of the Nairobi-Naivasha leg of the standard gauge railway (SGR), could be costing the taxpayer Sh21 million per day, according to documents seen by the Nation.A letter by the chief executive officer of the National Land Commission (NLC) to the CEO of the Ethics and Anti-Corruption Commission (EACC) says the cash, which amounts to nearly S billion for the stand-off period, was being accrued as payment to the railway's contractor for idle capacity and non-accessibility to the site.
Private-sector stakeholders have asked the government to allocate them the idle capacity of 150 mmcfd.
In a study to be presented at a conference in Panama City on Thursday, the private port operators association ATP will propose using the idle capacity of the old Panama Canal instead of the congested large new locks opened in 2016 for Panamax ships.
Pakistan LNG Terminals Ltd proposed that the private sector be allowed to import LNG to reduce idle capacity charge by about $12m.
ISLAMABAD -- Pakistan LNG Terminal Limited (PLTL) has said that the gas consumers would have to pay an additional amount of approximately $40 million in 2019, as the idle capacity of LNG terminal of Pakistan Gas Port Consortium (PGPC) during the year would be around 53pc.
stated that it needs to streamline its business content, consolidate some idle capacity, and save on distribution, personnel, and operating costs.
The local partner Vladifam takes over the drying, storage and logistics for the products and can thus use idle capacity.
Under take or pay agreement CPPA is bound to purchase all the 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."