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Supply Chain Management, SCM, SCRC Supply Chain Resource Cooperative, Poole College of Management, North Carolina State University

Tackling real-world supply chain management challenges by applying research, experience and knowledge.

SCRC Article Library: Capacity – Physical Flows

Capacity – Physical Flows

Published on: Jan, 19, 2011

1) The capability of a system to perform its expected function.
2) The capability of a worker, machine, work center, plant, or organization to produce output per time period.
Capacity required represents the system capability needed to make a given product mix (assuming technology, product specification, etc.). As a planning function, both capacity available and capacity required can be measured in the short term (capacity requirements plan), intermediate term (rough-cut capacity plan), and long term (resource requirements plan).

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