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Advanced · Course 5: Capacity and Order Booking · Lesson 1 of 5

Deciding whether to accept a new order against a factory's already-booked capacity

Level: AdvancedTime: 45 minutesOrder used: A (the T-shirt)Tool: Order booking planner
This lesson is for a merchandiser or production manager who must answer whether a new order can be booked onto a line that already carries other work. Line and quantity figures are illustrative teaching examples; no new booking figure here is a fixed master-cast fact.
FactoryDelta Garments
Line 1 weekly capacityabout 8,988 pieces (illustrative)
Already booked, Order A's own shape4,800 pieces that week
Free capacity, that week4,188 pieces (illustrative)
New enquiry from Northline Apparel5,000 pieces, same week
Shortfall against free capacity812 pieces (illustrative)
02Opening

This page explains how to decide whether a factory can accept a new order onto a line that already carries other confirmed work, and how much of it that line can actually take

This page is for anyone who must answer, quickly, whether a new order fits a line that is already busy. Track 8's Course 2 showed how to record every commitment on a shared booking sheet. This lesson uses that sheet to answer a forward-looking question: given what a line already carries, how much of a brand-new order can it still take. It mainly teaches a decision: accept in full, accept in part, or decline or reschedule.

This matters most at a factory like Delta Garments, where a buyer such as Northline Apparel may ask, mid-season, whether a line can take an additional order on top of what it already carries. Saying yes without checking can commit the factory to more than a line can deliver; saying no without checking can turn away work a line has room for.

Without checking free capacity first, a merchandiser can compare a new order to a line's full weekly capacity and get the wrong answer. This lesson gives the method: find a line's free capacity for the week, then compare the new order against that free capacity, not full weekly capacity.

03Before you start

What you need, and what this lesson does not cover

You need: a line's actual weekly capacity and its booking sheet, built as in Track 8's Course 2 (lessons 8.2.2 and 8.2.3). You do not need to have made an accept-or-reject decision before.

By the end of this lesson you can:

  • calculate a line's free capacity from its weekly capacity and what is already booked;
  • compare a new order against free capacity, not the line's full weekly capacity;
  • decide whether a new order is accepted in full, accepted in part, or declined;
  • state the shortfall when a new order exceeds a line's free capacity;
  • avoid checking a new order against full weekly capacity without subtracting bookings.

Not covered here: building the booking sheet itself (Track 8, Course 2), splitting a new order across more than one line when one line's free capacity is not enough (lesson 11.5.2), and what happens when a live order already on the sheet slips and forces a rework of the whole plan (lesson 11.5.3).

04Key terms

Words you will meet in this lesson

TermMeaning
Booking sheetA shared record that lists which lines are committed to which orders, in which weeks, and how much of each line's capacity each commitment uses, so every booking can be checked against the same total.
Capacity utilisationThe share of a factory's available capacity actually being used by confirmed orders, expressed as a percentage of its maximum output.
Pre-negotiated capacityFactory production capacity a buyer reserves ahead of a season, before a specific order is confirmed.
Make to Order (MTO)Production starts only after a specific buyer has confirmed a specific order, with quantity, price and delivery date agreed.
05Teaching
The rule

A new order is checked against a line's free capacity for the week in question, not against that line's full weekly capacity

A new order's requested quantity is compared against a line's free capacity for the week it would use: the line's actual weekly capacity, from Track 8's Course 2, minus everything already booked to it that week. A line can look free when only its full weekly capacity is considered, and already full when its existing bookings are properly subtracted first. Only free capacity tells a merchandiser how much room a line genuinely has left for a new order.

8,988 − 4,800 = 4,188

Line 1's free capacity that week, in pieces: actual weekly capacity (Track 8, Course 2) minus Order A's own shape, already booked.

Line 1, this weekPiecesWeekly capacity≈ 8,988Already booked, Order A's own shape4,800Free capacity for a new order4,188Northline's new enquiry, requested5,000
A new order is compared against free capacity, not full weekly capacity. Line 1 looks well under capacity at 8,988 pieces, but only 4,188 of that is actually free once Order A's existing 4,800-piece booking is subtracted.
What you meet in real life

The accept-or-reject decision changes shape depending on how much of a line is already booked and who is asking

A merchandiser who has only ever booked a line with nothing on it yet should not assume every new-order decision looks the same. The comparison is always against free capacity; what differs is how much free capacity there is and what kind of order is asking for it.

What can differThe shapes you meetWhy it matters
A line with nothing booked yetFree capacity equals the line's full weekly capacity, so any request up to that ceiling can be accepted in full.The simplest case, the baseline the method scales up from.
A line already carrying one confirmed orderFree capacity is the line's weekly capacity minus that order's booking, smaller than the full weekly figure.The same request that would have fit an empty line may not fit a partly booked one.
An export order requesting pre-negotiated capacityA buyer such as Northline Apparel may ask for capacity to be reserved ahead of season, before its own order details are final, checked against free capacity months in advance.A reservation made early can use up free capacity that a later, more urgent request then finds is gone.
A domestic Make to Stock order requesting capacity todayA domestic brand such as Cedar & Co. asks for whatever free capacity the sheet currently shows, checked against today's bookings rather than a seasonal reservation.The same free-capacity check applies, but against the sheet as it stands right now, not a forecast made months earlier.
A requested quantity larger than free capacityThe order cannot be accepted in full onto that line for that week without exceeding capacity.The decision becomes accept in part, decline, reschedule, or (lesson 11.5.2) split across more than one line.
The case we follow

Delta Garments' Line 1, already booked for Order A's own shape, checked against a new enquiry from Northline Apparel

Line 1 at Delta Garments already carries Order A's own shape, 4,800 pieces booked for a given week, continuing the figures fixed in Track 8's Course 2. Northline Apparel, the same export buyer behind Order A, now asks whether Line 1 can also take a new enquiry of 5,000 pieces in that same week.

FactWhat it tells the merchandiser
Line 1's actual weekly capacity, about 8,988 pieces (illustrative)The full ceiling for everything booked to Line 1 that week
Order A's own shape, 4,800 pieces already bookedThe commitment that must be subtracted before checking a new request
Free capacity after subtracting the existing booking4,188 pieces, the true room left for a new order
Northline's new enquiry, requested quantity5,000 pieces, more than the free capacity available
The worked number

Northline's new 5,000-piece enquiry, checked against Line 1's free capacity rather than its full weekly capacity

This example is illustrative, not a claimed fixed academy fact: Line 1's actual weekly capacity is about 8,988 pieces; with Order A's own shape already booked for 4,800 pieces that week, free capacity is 8,988 − 4,800 = 4,188 pieces. Northline's new enquiry asks for 5,000 pieces in the same week, which is 5,000 − 4,188 = 812 pieces more than Line 1's free capacity, so the enquiry cannot be accepted in full onto Line 1 for that week without exceeding capacity.

8,988 − 4,800 = 4,188

Line 1's free capacity that week: actual weekly capacity minus Order A's own booking already confirmed.

5,000 − 4,188 = 812

The shortfall: how much of Northline's new enquiry exceeds Line 1's free capacity that week.

4,800 booked4,188 freeNorthline's 5,000-piece request needs 812 pieces more than the 4,188 pieces actually free on Line 1 that week.
Only 4,188 of Line 1's 8,988-piece weekly capacity is actually free. Northline's 5,000-piece request exceeds that free capacity by 812 pieces, so it cannot be accepted onto Line 1 in full for that week.
The method

How to decide whether a new order can be accepted onto an already-booked line

  1. Calculate the line's actual weekly capacity for the week the new order would use, as in Track 8's Course 2.
  2. Add together everything already booked to that line in that week from the shared booking sheet.
  3. Subtract the booked total from the weekly capacity to find the line's free capacity for that week.
  4. Compare the new order's requested quantity against the free capacity, not against the line's full weekly capacity.
  5. Decide the outcome: accept in full if the request fits within free capacity, accept in part up to free capacity, or decline or reschedule if none of the request can be fitted.
The trap

Checking a new order's requested quantity against a line's full weekly capacity, without first subtracting what is already booked

A common mistake is comparing a new order's requested quantity against a line's full weekly capacity instead of its free capacity. This can make a line look like it has plenty of room, 5,000 pieces against a weekly capacity of 8,988, when the 4,800 pieces already committed to that same line and week have already used up most of what it can actually still take.

06In plain words

Before saying yes to a new order, work out how many pieces a line can actually still take that week. Start from what the line can produce in a week, then take away everything already booked to it. What is left is the line's free capacity. Compare the new order against that free number, not against the line's full weekly total. If the new order asks for more than the free capacity, it cannot all be accepted onto that line that week; some of it must wait, move to another week, or be declined. Checking a new order against the full weekly total, without subtracting what is already booked, makes a busy line look free when it is not.

07Quick check
  • Free capacity = a line's actual weekly capacity minus everything already booked to it that week.
  • A new order's requested quantity is always compared against free capacity, never against the full weekly capacity.
  • If the requested quantity fits within free capacity, the order can be accepted in full.
  • If the requested quantity exceeds free capacity, the order can only be accepted in part, up to the free amount, or must be declined or rescheduled.
  • Export orders may reserve pre-negotiated capacity months ahead, using up free capacity before a domestic order asks for what is left.
  • A shortfall is the requested quantity minus the free capacity, the amount that cannot be fitted onto that line that week.
08Workplace scenario

Sara asks whether Line 1 can take a new 5,000-piece enquiry the same week Order A's own 4,800-piece shape is already booked to it

Sara, the buyer at Northline Apparel, asks Mona whether Line 1 can also take a new 5,000-piece enquiry in the same week Order A's own shape already has 4,800 pieces booked to it. Mona compares the new enquiry's 5,000 pieces against Line 1's full weekly capacity of about 8,988 pieces and tells Sara it fits comfortably, without first subtracting Order A's existing booking.

  • Line 1's actual weekly capacity that week is about 8,988 pieces (illustrative).
  • Order A's own shape already has 4,800 pieces booked to Line 1 that week.
  • Free capacity, after subtracting the existing booking, is only 4,188 pieces.

Karim's note to Mona:

"Mona, before you tell Sara it fits, subtract what's already on the sheet for that week. Compare her new quantity to what's actually still free, not to the whole line."

Is it correct for Mona to compare the new 5,000-piece enquiry against Line 1's full weekly capacity of 8,988 pieces, without subtracting Order A's existing 4,800-piece booking?

Show decision

No. Mona must subtract Order A's existing 4,800 pieces from Line 1's weekly capacity of 8,988 pieces first, giving a free capacity of 4,188 pieces, and compare Northline's new 5,000-piece request against that free capacity, not against the full 8,988.

First, a line's weekly capacity is shared across every order already booked to it, so a new request is never compared against the whole figure on its own.

Second, 5,000 pieces exceeds the true free capacity of 4,188 pieces by 812 pieces, so the enquiry cannot be accepted in full onto Line 1 for that week.

Mona should tell Sara that Line 1 can take 4,188 pieces of the new enquiry that week, with the remaining 812 pieces moved to a different week or line, rather than confirming the full 5,000 pieces as fitting.

09What it costs

The cost of confirming a new order against a line's full weekly capacity instead of its free capacity

If Mona had confirmed the full 5,000-piece enquiry against Line 1's full weekly capacity without subtracting Order A's existing booking, Line 1 would end that week 812 pieces over its actual weekly capacity, once both orders are added together.

4,800 + 5,000 − 8,988 = 812

The amount by which Line 1 would be overbooked that week if the new enquiry were wrongly confirmed in full: both orders' quantities added together, minus the line's actual weekly capacity.

812 × 0.15 = 121.80

One possible cost of that overbooking, in USD: the 812-piece shortfall covered by overtime at Order A's own fixed overtime rate of USD 0.15 per piece, reused illustratively.

A wrongly confirmed order does not only cost overtime; it can also mean a late shipment to Northline Apparel or Order A's own delivery being pushed back to make room. Checking free capacity before confirming avoids the choice between these costs after a promise has already been made.

10Working template

Order booking planner: the "Accept or Reject" sheet

This lesson uses the "Accept or Reject" sheet of the course's Order booking planner, which reads a line's actual weekly capacity and its existing bookings from the shared booking sheet, calculates free capacity automatically, and compares any new enquiry's requested quantity against that free capacity. Enter the line, the week, the new enquiry's requested quantity, and let the sheet calculate free capacity and flag any shortfall. Download link: the course tool, `templates/T11-C05-order-booking-planner.xlsx`.

Download the Order booking planner (Excel)

11Check yourself

1. A line's weekly capacity is 8,988 pieces and it already has 4,800 pieces booked to it that week. A new order asks for 5,000 pieces the same week. What should the new order be compared against?

2. A line's free capacity for a week is 3,000 pieces. A new order requests 3,500 pieces the same week. What is the correct decision?

3. Why is a new order's requested quantity compared against a line's free capacity rather than its full weekly capacity?

12Glossary
ENARFRTRMeaning
Booking sheetورقة الحجزFiche de réservationRezervasyon tablosuA shared record that lists which lines are committed to which orders, in which weeks, and how much of each line's capacity each commitment uses, so every booking can be checked against the same total.
Capacity utilisationمعدل استغلال الطاقة الإنتاجيةTaux d'utilisation de la capacitéKapasite kullanım oranıThe share of a factory's available capacity actually being used by confirmed orders, expressed as a percentage of its maximum output.
Pre-negotiated capacityطاقة إنتاجية محجوزة مسبقًاCapacité pré-négociéeÖnceden ayrılmış kapasiteFactory production capacity a buyer reserves ahead of a season, before a specific order is confirmed.
Make to Order (MTO)الإنتاج حسب الطلبFabrication sur commande (MTO)Siparişe göre üretim (MTO)Production starts only after a specific buyer has confirmed a specific order, with quantity, price and delivery date agreed.
13Next

Lesson 11.5.2: Booking an order across multiple lines when one line alone cannot meet the date

You now know how to check a new order against a line's free capacity before accepting it. The next lesson looks at what to do when even the free capacity on one line is not enough, and the order must be split across more than one line. Back to the course map

14Ladder

RecognizeName what free capacity is and how it differs from a line's full weekly capacity.
ConnectSee why a new order must be checked against free capacity, not the full weekly figure.
CompareTell an order that fits within free capacity from one that exceeds it.
DecideAccept, partly accept, or decline a new order based on a line's actual free capacity.