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Plant Capacity and Attainability: Exploration and Remedies

Author

Listed:
  • Kristiaan Kerstens

    () (CNRS-LEM and IESEG School of Management)

  • Jafar Sadeghi

    (CNRS (LEM-UMR 9221) and IÉSEG School of Management)

  • Ignace Van de Woestyne

    (KU Leuven, Belgium)

Abstract

The output-oriented plant capacity notion has been around since more than two decades. It has mainly been applied empirically in the fishery and the hospital sectors. A problem known since its introduction into the literature is that it may not be attainable, in that it presupposes potentially unlimited amounts of variable inputs to determine the maximum of outputs available. This issue of the lack of attainability has never been explored. This paper fills this void both theoretically and empirically. It finds that the attainability may be problematic, and that bounds on the amounts of variable inputs may well need to be imposed.

Suggested Citation

  • Kristiaan Kerstens & Jafar Sadeghi & Ignace Van de Woestyne, 2017. "Plant Capacity and Attainability: Exploration and Remedies," Working Papers 2017-EQM-11, IESEG School of Management.
  • Handle: RePEc:ies:wpaper:e201711
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    File URL: https://www.ieseg.fr/wp-content/uploads/2012/03/2017-EQM-11_Kerstens.pdf
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    Cited by:

    1. Cesaroni, Giovanni & Kerstens, Kristiaan & Van de Woestyne, Ignace, 2019. "Short- and long-run plant capacity notions: Definitions and comparison," European Journal of Operational Research, Elsevier, vol. 275(1), pages 387-397.

    More about this item

    Keywords

    Technology; Plant Capacity; Attainability;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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