SKU Capacity Formula:
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The SKU Capacity formula calculates the production capacity per Stock Keeping Unit (SKU) by considering the production rate, operational efficiency, and demand for each specific SKU. This helps manufacturers optimize their production planning and inventory management.
The calculator uses the SKU Capacity formula:
Where:
Explanation: The formula determines how much production capacity should be allocated to each SKU based on the overall production capabilities and specific demand requirements.
Details: Accurate SKU capacity calculation is essential for efficient production planning, inventory optimization, meeting customer demand, and maximizing operational efficiency in textile and fabric manufacturing.
Tips: Enter production rate in meters per hour, efficiency as a decimal between 0 and 1, and SKU demand in units. All values must be positive numbers.
Q1: What is considered a good efficiency rating?
A: Typical manufacturing efficiency ranges from 0.75 to 0.95 (75-95%), depending on the equipment, processes, and industry standards.
Q2: How often should SKU capacity be recalculated?
A: SKU capacity should be reviewed regularly, especially when there are changes in production rates, efficiency improvements, or fluctuations in demand patterns.
Q3: Can this formula be used for other products besides fabric?
A: Yes, the formula can be adapted for any manufacturing process where production rate, efficiency, and SKU demand need to be balanced.
Q4: How does efficiency affect SKU capacity?
A: Higher efficiency directly increases SKU capacity, allowing more units to be produced with the same resources and time.
Q5: What if demand exceeds capacity?
A: If demand exceeds calculated capacity, manufacturers may need to increase production rates, improve efficiency, or prioritize high-demand SKUs in production scheduling.