The capacity planning process en-tail's determining the production capacity needed by an organization to meet static or fluid demand's by other company's or retailer's for it's product's. Other terms that come to mind would be "design capacity" Or "capacity management" or for even simpler thinking you could call it supply and demand.
Capacity planning is when a company plans for the capacity it will need. Good capacity planning is any type of capacity planning that works and is effective.
Capacity management is the ability to balance demand from customers and the ability of the service delivery system to satisfy the demand . This places an emphasis on understanding first the nature of demand by forecasting (Lovelock, 1984) and second the options for managing capacity to meet the expected demand. Sasser (1976) has suggested two basic strategies for managing capacity in services of "Level" and "Chase", the former applicable where capacity is limited and hence the focus is on influencing demand to be in line with capacity, and the latter strategy being possible when supply can be changed to keep in line with demand. Capacity management in services to match supply and demand has a direct influence on the ability of the service delivery system to achieve service quality and resource productivity targets. Capacity management in service operations is a testing activity for operations managers because the nature of the service delivery process and the involvement of the customers in the process restricts the normal options open for controlling the process to match supply with demand; namely, altering the capacity, holding and inventory in anticipation of demand, and requiring customers to wait for the service.
Capacity planning is basically understanding how much your company can produce efficiently. The reason this is important is because it helps with supply and demand meaning you don't want to overproduce but you also want to be able to supply as much as being demanded.
Capacity cushion, which is an amount of capacity in excess of expected demand when there is some uncertainty about demand.
For capacity planning, you would typically use tools such as network monitoring software, performance monitoring tools, and capacity planning software. These tools help you analyze current usage, predict future demand, and identify potential bottlenecks in your infrastructure. Additionally, you may use server management tools to track server utilization and forecast resource requirements.
The aggregate plan balances the Plant's capacity with demand and the MPS translates this plan into numbers of specific products in time frames.
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When there are more options for healthcare, demand will drop. When there are less options, demand will increase for quality healthcare.
When planning, there are different options that could be chosen. Decision making is relevant to planning because decisions as to the best options need to be made.
Career planning options
The five major categories of operation planning are: capacity planning, location planning, layout planning, quality planning, and methods planning.