What is capacity utilization in SAP AP-SDM - SCM Supply and Demand Matching?

SAP Term: capacity utilization

• Component: AP-SDM

• Component Name: SCM Supply and Demand Matching

• Description: The ratio of capacity load to capacity supply in a time period, expressed as a percentage.

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• Key Concepts: 
  Capacity utilization is a measure of how efficiently a company is using its resources. It is calculated by dividing the actual output of a process or system by its potential output. In the context of SAP Supply and Demand Matching (SDM), capacity utilization is used to determine the amount of available capacity for a given product or service. 
  
  How to use it: 
  In SAP SDM, capacity utilization is used to determine the amount of available capacity for a given product or service. This information can be used to optimize production and distribution processes, as well as to identify areas where additional capacity may be needed. Capacity utilization can also be used to identify potential bottlenecks in the supply chain. 
  
  Tips & Tricks: 
  When calculating capacity utilization, it is important to consider both the actual and potential output of a process or system. Additionally, it is important to consider any external factors that may affect capacity utilization, such as changes in demand or supply. 
  
  Related Information: 
  Capacity utilization is closely related to other measures of efficiency, such as throughput time and cycle time. Additionally, capacity utilization can be used in conjunction with other metrics, such as inventory levels and lead times, to gain a better understanding of the overall performance of a supply chain.