What is capacity planning?

The capacity planning is basically used for determining the actual needs of the production capacity in the organization to satisfy changing needs for the product and the services.

With regards to the capacity planning, the plan limit is the most extreme measure of work in an association and organization and it is fit for finishing in the given time.

The capacity planning is known as effective capacity, when the organization complete its maximum amount of the work in the given time. The capacity planning is important as the capacity limit the actual rate of the final output.