What is vendor capacity in SAP IS-AFS-MM - Materials Management?

SAP Term: vendor capacity

• Component: IS-AFS-MM

• Component Name: Materials Management

• Description: A service in time units or units of measure that a vendor is willing to perform for you in a certain time period. The vendor capacity consists of total capacity and overload capacity and forms a decisive criterion for the assignment of the fixed vendor in the source allocation.

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• Key Concepts: 
  Vendor capacity is a feature in SAP Materials Management (MM) that allows users to define the maximum amount of goods or services that a vendor can provide. This helps to ensure that the vendor can meet the demands of the company and that the company does not exceed its budget. 
  
  How to use it: 
  In order to use vendor capacity, users must first define the maximum amount of goods or services that a vendor can provide. This can be done by entering the maximum amount in the “Vendor Capacity” field in the vendor master data. Once this is done, users can then monitor the vendor’s capacity by viewing the “Vendor Capacity” report. 
  
  Tips & Tricks: 
  It is important to keep track of vendor capacity in order to ensure that vendors are able to meet the demands of the company. Additionally, it is important to regularly review and update vendor capacity as needed in order to ensure that vendors are not overburdened. 
  
  Related Information: 
  For more information on vendor capacity, please refer to SAP Help documentation on Materials Management (MM). Additionally, there are several online resources available that provide more detailed information on how to use and manage vendor capacity in SAP MM.