Capacity

Glossary Page

According to the ART4DCM-86 - DCM standard, the capacity of a supplier is defined in several ways. The "supplier capacity" refers to the amount of output that a supplier can realistically produce per calendar week and material for a particular customer, taking into account all factors that may affect this capacity. The "supplier maximum capacity," on the other hand, is the absolute maximum amount of output that a supplier can produce per calendar week and material for a specific customer. The difference between the supplier's maximum capacity and their actual capacity is known as the "supplier flex capacity," which represents the amount of flexible capacity that a supplier has available. Finally, the "contractual capacity" is the capacity that is agreed upon in a contract between the supplier and the customer for a specific period, typically converted to a weekly basis.

https://www.supplyon.com/en/blog/no-more-out-of-supply-how-capacity-management-builds-resiliency-into-supply-chains/

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