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Overcapacity Meaning: Definition, Examples, and Translations

๐Ÿ“ฆ
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overcapacity

[oสŠvษ™rkษ™หˆpรฆsษชti ]

Definition

Context #1 | Noun

business context

Overcapacity refers to a situation where production capacity exceeds demand. This can lead to inefficiencies and increased costs for businesses, as they may produce more goods than the market can absorb. Managing overcapacity is crucial for companies to maintain profitability and competitiveness.

Synonyms

excess capacity, overproduction, surplus capacity.

Examples of usage

  • The factory faced overcapacity issues last year.
  • Overcapacity in the airline industry led to lower ticket prices.
  • Companies are struggling with overcapacity in manufacturing.
  • The market downturn resulted in significant overcapacity.
  • Addressing overcapacity can improve operational efficiency.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economics

  • In business, overcapacity can lead to wasted resources, as companies produce more than the market can absorb.
  • Overcapacity in industries often results in layoffs, as businesses need to cut costs when they canโ€™t sell all their products.

Transportation

  • Airlines measure overcapacity to avoid delays; sending too many flights to the same destination can cause congestion at airports.
  • Public transportation systems face overcapacity during rush hours, leading to crowding and user dissatisfaction.

Environmental Impact

  • When ecosystems are overcapacity, such as too many fish in a pond, it can lead to depletion of resources and harm the environment.
  • Urban areas may reach overcapacity in terms of waste management, resulting in pollution and health hazards.

Technology

  • Data centers can experience overcapacity when they handle more data than they have storage, leading to slow processing and crashes.
  • Cloud computing providers monitor overcapacity to ensure users have enough resources without interruption or service failure.

Education

  • Schools can face overcapacity when there are too many students for the number of available classrooms, impacting the quality of education.
  • University campuses may deal with overcapacity by offering online courses, helping to manage student numbers.

Origin of 'overcapacity'

The term 'overcapacity' combines the prefix 'over-' which means 'excessive' or 'beyond,' and the word 'capacity,' which pertains to the maximum amount that something can contain or produce. The emergence of this term can be traced back to the industrialization era when manufacturing capabilities began to outpace market demands. As industries expanded and production technology advanced, instances of overcapacity became more prevalent. Definitions of overcapacity evolved with economic theories and market dynamics, reflecting how different sectors, such as manufacturing, services, and agriculture, navigate their production capabilities relative to demand. Understanding and managing overcapacity has become a focal point in strategic planning, especially for businesses looking to enhance profitability and efficiency in an unpredictable economic climate.

Word Frequency Rank

This word's position of #31,538 indicates it's among the more rare English words. While understanding it broadens your vocabulary, focus on more common words first.