Establishing a minimum capacity and managing with alternate sources like overtime, additional shifts, and subcontracting is always a low-risk strategy. Comment!

Establishing a minimum capacity and managing additional demand through alternate sources such as overtime, additional shifts, and subcontracting is considered a low-risk strategy in the management of machines and materials. This approach allows firms to maintain flexibility, control costs, and efficiently respond to market fluctuations without committing to permanent capacity expansions.  

Maintaining a minimum capacity ensures that a company does not over-invest in fixed assets such as machines, tools, and infrastructure. By keeping a lean capacity, firms can optimize capital expenditures and avoid the financial risks associated with idle machinery and excess labor during periods of low demand. This strategy aligns with lean management principles, which focus on minimizing waste and improving efficiency _________ ____ ______ _______ _______ ____ ___ _____ ________.
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