The situation where maximum global prodution of automobiles exceeds the total global demand for automobiles.

It is used to describe a situation where the global production of automobiles exceeds the total global demand for them.

The capacity which exceeds the capacity needed to sustain a normal production level. The available capacity can be used to cover peak production levels and thus increase the flexibility of a manufacturer. Or it can provide additional capacity required if a constant increase in production is forecasted for the future.

work-in-process products