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Definition of

capacity planning

Operations & Production

estimation of organization's requirements to meet workload the process of measuring the amount of work that can be completed within a given time and determining the necessary physical and human resources needed to accomplish it. Capacity planning uses capacity utilization to ensure that the maximum amount of product is made and sold. The planning involves a regulation process that identifies deviations from the plan, allowing corrective action to be taken. A capacity requirements planning program can aid in the process of capacity planning.

Definitions of ’capacity planning’ and meaning of ’capacity planning’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’capacity planning’ and other financial terms with our online QFINANCE Financial Dictionary.

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