What do you mean by the term capacity planning?

Business & Management
#1

Capacity Planning is very important in production and manufacturing industry it gives a brief idea about what levels od production must be there to meet the demand of the market.
The process of determining the production capacity needed by an organization to meet changing demands for its products. Different types of capacity exist. For example, 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 problems, delays, and material management.