Supply Chain Glossary - C

Supply Chain Glossary - C

capacity bill procedure

A rough-cut capacity planning method that takes into account any shifts in product mix. Bill of material and routing information are required with direct labor-hour or machine-hour data available for each operation. See: bill of labor.

A purchasing practice whereby a company commits to a supplier for a given amount of its capacity per unit of time. Subsequently, schedules for individual items are given to the supplier in quantities to match the committed level of capacity. Syn: buying capacity.


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