what is capacity planning and example effective and design capacity?
Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. It is the process of allocating resources to meet customer demand.
Effective capacity is the maximum amount of output that an organization is capable of producing with its existing resources. It is the actual output that can be achieved when resources are used efficiently.
Design capacity is the maximum amount of output that an organization is capable of producing with its existing resources. It is the theoretical maximum output that can be achieved when resources are used optimally.