CAPPS is able to suggest sales forecasts for each stock keeping unit. Once the forecasts are accepted by the Planner, CAPPS is able to automatically generate Master Production Plans and Detailed Scheduling Programs, while considering finite production capacity, raw material availabilities and other constraints, such as space or financial resources.
The main objectives of these Plans and Schedules are the reduction of lost sales due to inventory shortages, a decrease in inventory levels (working capital) and a reduction of setup times (allowing an increase in production capacity).
In the case of wholesalers and retailers, CAPPS may generate supply plans for the replenishment of Distribution Centers (DCs) from their suppliers, or distribution plans to replenish stores from one or more DCs. These optimized plans generate significant reductions of stock outs, a decrease of required inventory investment, a reduction in transportation costs and, additionally, a lower workload on Distribution Centers and local stores.
Most of the date used by CAPPs come from the ERP system used by the customer.