Mothballing

AAA

DEFINITION of 'Mothballing'

The preservation of a production facility without using it to produce. Machinery in a mothballed facility is kept in working order so that production may be restored quickly if needed.

INVESTOPEDIA EXPLAINS 'Mothballing'

A desirable production strategy for a company that has high operating costs, mothballing allows a factory produce goods upon demand instead of on a continual basis.

RELATED TERMS
  1. Committed Facility

    A credit facility whereby terms and conditions are clearly defined ...
  2. Big Uglies

    Old industrial companies in gritty industries (such as mining, ...
  3. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
  4. Production Efficiency

    1. An economic level at which the economy can no longer produce ...
  5. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial ...
  6. Protected Cell Company (PCC)

    A corporate structure in which a single legal entity is comprised ...
Related Articles
  1. Insurance

    Working Capital Works

    A company's efficiency, financial strength and cash-flow health show in its management of working capital.
  2. Active Trading

    Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
  3. Economics

    Dilip Shanghvi's Net Worth: How Did He Get So Rich?

    Dilip Shanghvi made Sun Pharma a huge global business through smart acquisitions and strategic entry into the right market sectors.
  4. Professionals

    How Mukesh Ambani Has Expanded Reliance Industry

    Mukesh Ambani has expanded Reliance Industries and increased its revenues, but his public image, and that of his company, have not fared as well.
  5. Budgeting

    The Momentum, And Methods, Behind Walmart's Model

    Walmart's success stems from low costs, which are possible through specific supply and distribution strategies, and are passed to consumers as low prices.
  6. Fundamental Analysis

    Google Ads Vs. Facebook Ads

    Universal access to the internet through smartphones, tablets and computers has driven the success of numerous companies. Most notably, Google and Facebook have witnessed staggering growth as ...
  7. Entrepreneurship

    When Is An MBA Worth It?

    Earning an MBA can enhance one's career path, or help land a high-paying job. Alternative options are the CFA or a Master's degree in Finance or Economics.
  8. Entrepreneurship

    Which Is Right For You: MBA or Master's In Finance?

    While an MBA offers more flexibility in terms of curriculum and ability to take classes part time, a Master's of Finance is a good alternative for students seeking a finance-specific career.
  9. Entrepreneurship

    How Motif Investments Works: Risks & Rewards

    Startup Motif Investing is changing the way investors create portfolios, combining real-word trends and customization for a unique investing experience.
  10. Personal Finance

    What are the top trends in corporate social responsibility?

    Learn about top trends in corporate social responsibility. Companies are increasing transparency, innovating, investing locally and addressing inequalities.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center