Supply Chain & Procurement worked example

Supplier Capacity Coverage with supplier committed capacity of 3,000 units: a worked example

Push supplier committed capacity up to 3,000 units and the picture changes. This example computes every intermediate figure at that operating point. Use it to flag supply gaps before they bite in Supply Chain & Procurement.

The inputs for this scenario

  • Supplier committed capacity: 3,000 units (raised for this scenario; the documented default is 1,200)
  • Required demand: 1,000 units (unchanged)
  • Percentage conversion basis: 100 x (unchanged)

Working through the calculation

  • Applying the documented formula (Capacity coverage = supplier committed capacity ÷ required demand × 100) to the inputs above produces each figure below.
  • At this operating point the engine returns 300 % for capacity coverage, the number this scenario is built around.
  • At this operating point the engine returns 3 value for raw ratio.
  • At this operating point the engine returns 100 x for conversion factor.
  • At this operating point the engine returns 1,000 value for denominator.

How this compares with the baseline

  • Against the tool's baseline example, where supplier committed capacity sits at 1,200 units and the headline result is 120 %, this scenario comes in 150% above the baseline at 300 %.
  • It divides supplier committed capacity by required demand and expresses the result as a percentage of demand covered. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Capacity coverage: 300 % (headline result)
  • Raw ratio: 3 value
  • Conversion factor: 100 x
  • Denominator: 1,000 value

Run it with your numbers

  • Every input above is editable in the live Supplier Capacity Coverage calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.