d to produce the part. Such an investment is not inconsequential, particularly for companies which are first starting out and which already face a shortage of capital (in most cases) (Leenders, 1985, p. 21). Second, while excess capacity could be used to help make up the slack in other areas of production, if the plant is operating at near full capacity, additional personnel will have to be hired and trained in producing the requisite parts. This requires an additional outlay in the form of payroll and benefits that the company may not be willing or able to invest. If
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