4.0 Management of the operation quality and Theoretical approach to control the excess capacity:
Retaining the quality of the product is very much important. For this very process, the farmer is needed to harvest the proper product and market that well. With the demand, application of the proper technology in the harvesting, ripping and packaging is very much necessary (Razaque et al.). Operation management of this process is very much important for achieving the bottleneck system.
4.1 Uncertain Demand Theory:
Conventionally the excess capacity is the miscalculation of the firm about the development of the product. A firm often considers that the market is blooming. This actually results in increase of the production. If the cost of the product remains low in expectation of the firm and the demand of the product certainly falls down, the firm has to suffer and the product becomes excess in the market place.
In alternative way, the additional stock of the product and to procure the idea that the value of the product will increase let the producer to stock the product, thereby letting the product to be cross its excess capacity (Grinsven). In general way misunderstanding of the current capacity of the firm and misjudgment of the current demand of the market place responsible in the generation of the excess capacity. This very theory is latent and applicable only when the demand and supply in the market is not proportionate. Therefore, what is basically needed in this case is the proper assessment of the demand of the market place.