EXPLOITING SURPLUS PRODUCTION CAPACITY WITHIN THE FRAMEWORK OF STREAMLINING SUPPLY CHAINS USING THE QUANTITATIVE APPROACH

Abstract

This research studies the reality of excess production capacity in the General Company for Automotive and Equipment Industry in Alexandria, Iraq, and represents part of a scientific methodology aimed at improving production efficiency and reducing losses. The research first identifies the main problem, which is the existence of excess production capacity due to the decline in demand for the company's products, which leads to the underutilization of machines and human resources. As the company suffers from a negative reputation in the market, the excess production capacity was estimated at up to 50% of its total capacity. The research recommends the need to develop strategies to exploit excess capacity, enhance cooperation with universities to improve innovation, and use effective management methods to improve supply chains, which contributes to enhancing production efficiency and developing local industry. The research represents a call for those concerned with the industrial sector in Iraq to adopt effective strategies that support the optimal utilization of resources and improve the economic situation