Emphasizes the difference between the cost of perfect ahead knowing the actual demand (committed costs) and the costs in proportion to the demand. Committed, fixed costs to their supply depends on the amount actually used. Flexible resources are available as needed, so their costs are likely to variable demand. Shows how committed costs can be reduced in two stages: 1) to reduce the demand for the activities carried out by these dedicated resources, creating untapped potential, and 2) management of excess capacity allocated resources - either by reducing the supply or by placing these resources alternative and more profitable use. "Hide
by Robert S. Kaplan 3 pages. Publication Date: February 19, 1997. Prod. #: 197078-PDF-ENG
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