Definition
Capacity: All three are actionable.
In detail
The rate time fence is the furthest segment of the time fence, where materials, production, and capacity can all be adjusted. It addresses resource allocation issues in long-term planning, allowing for strategic capacity adjustments. The difference from the demand time fence is that all elements are fixed in the latter. Typical output is the decision basis for capacity adjustments, such as investing in new equipment or adding shifts.
Example in practice
Within the rate time fence, the company forecasts a significant increase in future demand. Management decides to invest in a new production line and hire employees in advance based on this rule. Since it is in an adjustable phase, these changes are implemented smoothly, preparing for future demand.