capacity vs demand analysis

**Capacity vs demand analysis** is the **comparison of available manufacturing capability against required output over time to identify supply gaps or surplus** - it is the primary diagnostic for balancing service level and utilization. **What Is Capacity vs demand analysis?** - **Definition**: Time-bucketed gap assessment between forecast demand load and effective factory capacity. - **Capacity Basis**: Includes realistic uptime, yield-adjusted throughput, and constraint-tool limits. - **Demand Basis**: Combines committed orders, forecast uncertainty, and mix-driven routing effects. - **Gap Outputs**: Quantifies expected shortfall, headroom, or overload by period and product family. **Why Capacity vs demand analysis Matters** - **Early Warning**: Detects future bottlenecks before delivery commitments are missed. - **Pricing and Allocation**: Supports policy decisions under sustained demand overhang. - **Investment Timing**: Informs when to add tools, outsource, or rebalance product mix. - **Utilization Control**: Highlights periods of underload that require start-rate adjustment. - **Strategic Alignment**: Aligns sales commitments with operational feasibility. **How It Is Used in Practice** - **Granular Modeling**: Analyze by tool family, route segment, and product mix scenario. - **Mitigation Planning**: Define actions for gaps, including capacity add, mix shift, and schedule changes. - **Review Cadence**: Recompute with rolling forecasts and updated factory performance data. Capacity vs demand analysis is **a core planning control for fab balance** - disciplined gap visibility enables proactive actions that protect both delivery reliability and capital efficiency.