What does TEU mean?

The container shipping industry consists of shipping companies with as core activity the transportation of containerized goods over sea via regular liner services.

Containers transformed the economics of shipping: the ability to pack different goods into uniform boxes simplified loading and unloading, as well as transfers to rail, truck, and other modes of transport.

TEU – “twenty foot equivalent unit.” It is a standard container size that can be loaded and sealed onto ships, railroad cars, trucks, and planes. The dimensions of a TEU are 20 ft (length) × 8 ft (width) × 9 ft (height). The maximum gross mass for dry cargo TEU is 52,910 lb : 47,770 lb (net load) + 5,140 lb (empty container weight).

Most containers today are of the 40-ft (12.2 m) variety and are known as 40-foot containers. This is equivalent to 2 TEU. 45-foot (13.7 m) containers are also designated 2 TEU.
What does TEU mean?

Rough cut capacity planning (RCCP)

Rough cut capacity planning (RCCP) aims at evaluating a tentative MPS with respect to available productive capacity.

It used to test the feasibility of the MPS from the perspective of capacity requirements prior to committing to the changes and running MRP and CRP.

The role of rough cut capacity planning is to be able to compare different tentative master production schedules, before running MRP. One of the major benefits of rough cut capacity planning is that master schedulers do not need a detail routing for every item in the plan. This is what makes rough cut capacity planning a simple and quick tool to use.

In contrast, detail capacity requirements planning (CRP) requires master scheduling, material requirements planning, inventory control, bills-of-material, detail routings and shop floor control.

On the average rough cut capacity planning can be productively used in as few as 30 to 90 days after implementing a rough cut capacity system.

Rough cut capacity planning starts with the overall strategic plan and overlaps with the 12-month rolling demand plan. The strategic element of rough cut capacity planning is simply the assurance that the business is set with plants and equipment for the three to five year plan.
Rough cut capacity planning (RCCP)

Aggregate capacity planning

In the context of capacity planning, capacity refers to a firm’s labor and machine resources. Aggregate capacity planning is the process of devising a plan for providing a production capacity scheme to support the intermediate range sales forecast.

As a forecast demand becomes known in the form of customer orders, aggregate capacity plan may have to be revised upwards and downwards to avoid either overloaded or underloaded facilities. The aggregate capacity plan checks whether there is sufficient capacity to meet the demand expressed in the aggregate output plan.

The planning lays down how the capacity will be utilized and how over or under capacity will be corrected by using different strategies.

While the basic capacity is fixed, in the short run it could be augmented by overtime or running an extra shift or by subcontracting. The labor inputs could be varied.

Aggregate capacity planning models are often found in process industries because firms in these industries typically focus on capacity first and then schedule materials and labor.
Aggregate capacity planning