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Discuss the capacity planning concept

      

Discuss the capacity planning concept

  

Answers


Ruth
Capacity planning is the process of determining the production capacity needed by an
organization to meet changing demands for its products. In the context of capacity planning,
design capacity is the maximum amount of work that an organization is capable of completing in a given period. Effective capacity is the maximum amount of work that an organization is
capable of completing in a given period due to constraints such as quality, problem delays,
material handling e. t. c. The phrase is also used in business computing as synonym for capacity management. A discrepancy between the capacity of an organization and the demand of its customer’s results inefficiency, either in order utilized resources or unfulfilled customers. The goal of capacity planning is to minimize this discrepancy. Demand for an organization capacity varies based on changes in production output such as increasing or decreasing the production quantity of an existing product or producing new product.
NatalieR answered the question on June 13, 2022 at 06:33


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