A capacity management system and method. A demand priority for each foundry and commodity capacity demand is determined according to sales and product information thereof. A capacity is then allocated for the foundry and commodity capacity demands according to the corresponding demand priority, thereby generating a capacity allocation plan. Then, an output request plan is generated according to the capacity allocation plan, a product cycle time, product order status and product inventory status. The product inventory status comprises information of products in process and finished goods.

 
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