In supply chain management, what does "overload" signify?

In supply chain management, "overload" signifies a situation where the total workload exceeds what the work center can handle. This means that the demand placed upon the work center surpasses its capacity to process that work efficiently. When a work center is overloaded, it can lead to delays, reduced quality of output, and increased lead times, as resources struggle to meet the high demand.

Understanding this concept is essential for effective capacity planning and resource management within supply chains. Identifying potential overload situations allows managers to take corrective actions, whether by reallocating resources, adjusting production schedules, or implementing additional capacity strategies to ensure that operations run smoothly and efficiently.

The other options mention situations that either indicate underutilization, maximum efficiency, or a buffer of work, which do not align with the definition of overload. Recognizing and addressing overload is critical to maintaining balance and ensuring that supply chains operate effectively.