Effects of Using Inventory and Capacity Allocation Policies for Customer Orders

APQC has found that organizations using inventory and capacity allocation policies to schedule customer orders perform better on key performance indicators. According to APQC’s Open Standards Benchmarking® data in supply chain planning, giving certain customers highest priority in production and order fulfillment correlates with improved customer order cycle time, higher finished goods inventory turn rate, and better customer retention rate.

From APQC’s Supply Chain Planning: Blueprint for Success, this article describes a performance driver for better supply chain planning performance.