Analysis of Business Processes Linking Extra Production Capacity to Ultra-quick Delivery: A Case Study of A-One Seimitsu Based on Customer-responsive Time

Abstract

It has been thought that a low price is sufficient as long as it exceeds variable costs, when taking orders using extra production capacity (EPC). But in the long term, fixed costs may not be recovered and EPC may be subject to reduction. Wang (2022, 2024) verified that having EPC makes it possible to quickly respond to customer orders and offer a higher price than the normal one, but it did not clarify how EPC leads to quick delivery. Based on the framework of customer-responsive time, this research conducted a case study of A-one Seimitsu Inc. to examine the issue.