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Against Quote by Alan Greenspan

“Manufacturing capacity is not a rigid level against which one bounces. When you are dealing with a world economy, with a flexibility to employ production facilities other than one's own, then the concept of capacity is vaguer.” quote by Alan Greenspan
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“Manufacturing capacity is not a rigid level against which one bounces. When you are dealing with a world economy, with a flexibility to employ production facilities other than one's own, then the concept of capacity is vaguer.”

Alan Greenspan

About This Quote

Source Speech: Testimony before the Senate Banking Committee, 2005

Capacity is flexible, not fixed; firms can shift production across global resources, making traditional limits vague.

In simple terms: Capacity can be shifted worldwide.

Key Takeaway

Adapt planning to flexible resources.

Themes

economics globalization production strategy

Mood

analytical pragmatic

Type

economic strategic

When to use this quote

  • manufacturing planning
  • risk management
  • investment decisions
  • policy making

Key Concepts

flexibility resource allocation global supply chain

Questions to Reflect On

  • How do you assess flexibility in your supply chain?
  • What risks arise when relying on external capacity?
A Different Perspective

Assumes access to alternative facilities, which may not exist for all firms.

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