What is capacity planning?

What is capacity planning?

• A. To adjust workforce schedules to match short-term demand fluctuations.
• B. Scheduling the daily delivery routes.
• C. To determine the maximum output achievable with existing resources and align it with demand forecasts.
• D. Selecting suppliers for procurement.

Answer: (C)

Capacity planning is about figuring out how much a production system can output using the resources you already have (facilities, equipment, labor, and processes) and then aligning that capacity with forecasted demand. It looks at the long-term balance between what you can produce and what customers are expected to need, so you can plan for expansion, contraction, or adjustments to stay efficient and meet service levels. The choice described captures that idea by specifying the maximum output achievable with existing resources and its match to demand forecasts. Other activities mentioned are more about day-to-day or separate functions: adjusting workforce schedules for short-term demand is tactical staffing, routing handles daily delivery paths, and supplier selection is about sourcing. They address different aspects of operations than the overall capacity you can sustain.

Capacity planning is about figuring out how much a production system can output using the resources you already have (facilities, equipment, labor, and processes) and then aligning that capacity with forecasted demand. It looks at the long-term balance between what you can produce and what customers are expected to need, so you can plan for expansion, contraction, or adjustments to stay efficient and meet service levels. The choice described captures that idea by specifying the maximum output achievable with existing resources and its match to demand forecasts.

Other activities mentioned are more about day-to-day or separate functions: adjusting workforce schedules for short-term demand is tactical staffing, routing handles daily delivery paths, and supplier selection is about sourcing. They address different aspects of operations than the overall capacity you can sustain.