Example: to calculate additional capacity requirements

The additional capacity requirements for an item unit in a specific time period, is a value that LN uses to determine the remaining available capacity of a certain resource. This is one of the steps in the optimization algorithm for logistic parameters in the Resource Analysis and Optimization module of Enterprise Planning.

The formula that LN uses to calculate the additional capacity requirements is:

ACR = (R * D) + (S * F)

Where:

ACRAdditional capacity requirements
RRequired capacity per item unit
DTotal demand over the time period
SRequired capacity for setting up the resource
FNumber of times an item is produced in the optimized time period

 

Example

Suppose that we have the following data:

R:0.5 hour/piece
D:600 pieces
S:1 hour
F:20

 

The calculation of the additional capacity requirements is then:

ACR = (R * D) + (S * F) = (0.5 * 600) + (1 * 20) = 300 + 20 =
		  320

This means that the additional capacity requirements for all the items of the corresponding plan unit in the involved period is 320 hours.

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