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Calculation of Available Capacity in Process Manufacturing Constrained Planning

in Supply Chain Planning and Collaboration 1 comment

Summary:

How is available capacity calculated in Constrained Planning.

Suppose -

  • We have a Process Manufacturing work definition with output batch Quantity 33333
  • When we rollup the lead times Processing lead time comes to 1.47
  • Since this is constrained planning, Only this processing lead time should matter (Variable, Fixed etc. should not matter)
  • Now, If we have a demand for Qty 433333, then,

Total Demand Quantity = 433333

Batch Quantity = 33333

Number of Batches = 13.00012 (Total Quantity /Batch Quantity)

Time Taken For 1 Batch (Processing LT) = 1.47 Days

Therefore,

Total Production Time for All Batches (Total Quantity ) = 19.1101764 Working days (Time taken for one batch * Number of Batches)

Is the above calculation correct ?

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