What is 'capacity factor' in SAP SCM-SOP - Sales & Operations Planning?

capacity factor - Overview

• Component: SCM-SOP

• Component Name: Sales & Operations Planning

• Description: Capacity factor is a key figure in the xSOP application. It is used to convert units to hours of capacity.

capacity factor - Details

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  Key Concepts: 
  Capacity factor is a measure of the capacity utilization of a production facility. It is calculated by dividing the actual output of a facility by its maximum potential output. In SAP SCM-SOP Sales & Operations Planning, capacity factor is used to determine the amount of capacity that needs to be allocated for a given production run. 
  
  How to use it: 
  In SAP SCM-SOP Sales & Operations Planning, capacity factor is used to determine the amount of capacity that needs to be allocated for a given production run. Capacity factor can be calculated by dividing the actual output of a facility by its maximum potential output. This calculation can be used to determine the amount of capacity that needs to be allocated for a given production run. 
  
  Tips & Tricks: 
  When calculating capacity factor, it is important to consider the actual output of the facility as well as its maximum potential output. This will ensure that the correct amount of capacity is allocated for a given production run. Additionally, it is important to consider any seasonal fluctuations in demand when calculating capacity factor. 
  
  Related Information: 
  Capacity factor is closely related to other measures of production efficiency such as utilization rate and throughput rate. Additionally, it is important to consider other factors such as labor costs and material costs when calculating capacity factor.