On-time delivery performance in the supply chain can best be improved by aligning required capacity with what type of capacity?

Question

Quizplus · Accepted Answer

Demonstrated capacity is the actual capacity exhibited by a supplier, based on their past performance. By aligning required capacity with demonstrated capacity, organizations can ensure that they are working with suppliers who have a track record of delivering on time, and can, therefore, improve their on-time delivery performance. Rated, budgeted, and theoretical capacity are all estimates or plans, and may not accurately reflect a supplier's actual capacity to deliver on time.

On-Time Delivery Performance in the Supply Chain Can Best Be