Toyota executives did a calculation about how much money they spent on steel sheets

from Nucor Corporation over the last ten years. The expenditure on steel sheets was

indeed a significant recurring cost to Toyota. So, Toyota has decided to build their own

steel plant. Our Assistant Professor, S. declares that this is a totally bad idea for many reasons, the main one, in her view, is the problem of capacity matching. Now,

you explain clearly and fully how indeed Assistant Professor, S, could be

correct.