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Capacity Planning

It is a measure of ability to produce goods or services or it is a rate of output.Capacity is a maximum output rate for products or services or to the amounts of key resources available in each operating period. Examples 500 CARS/DAY 200SERVICE CALLS /DAY 300 PCS/MAN

Measures of capacity
Tangible:Maximum output rate (25 tractors/shift)
Intangible ,services ,variable o/p characteristics (beds)

Relationship between demand and capacity in UOM

Quantity How much per day/week /shift etc Timing When should the service be avl? Quality What kind of achievement? Location Where should facility be?