Capacity planning

Determining production capacity need by organization to meet changing demands for products

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 or individual is capable of completing in a given period. Effective capacity is the maximum amount of work that an organization or individual is capable of completing in a given period due to constraints such as quality problems, delays, material handling, etc.

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