Why does infinite capacity planning hurt on-time delivery?

Infinite capacity planning assumes machines can absorb any workload at any time, without checking actual availability. Most standard ERP scheduling modules work this way. The result is delivery dates that look feasible on screen but cannot be met on the shop floor, which is why manufacturers using infinite capacity planning often see OTD rates of 60–75%. Switching to finite capacity scheduling, which only assigns work to available capacity, can significantly improve OTD rates.

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