Plant Capacity and Attainability: Exploration and Remedies

Kristiaan Kerstens, Jafar Sadeghi and Ignace Van de Woestyne
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Jafar Sadeghi: CNRS (LEM-UMR 9221) and IÉSEG School of Management
Ignace Van de Woestyne: KU Leuven, Belgium

No 2017-EQM-11, Working Papers from IESEG School of Management

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.

Keywords: Technology; Plant Capacity; Attainability (search for similar items in EconPapers)
JEL-codes: D24 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2017-11
New Economics Papers: this item is included in nep-eff
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Related works:
Working Paper: Plant Capacity and Attainability: Exploration and Remedies (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ies:wpaper:e201711

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