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What is Capacity Planning

Capacity Planning: It is any strategy which is used to recognize the amount of production needed to satisfy the demand for the services and goods produced by a business. The thought is to balance the purchase of resources, the maintenance of production facilities, the hiring of labor and the final production and hence consumers have a steady supply of the products they wish. At similar time, capacity planning too seeks to raise gains by removing needless waste, comprising the overproduction of any service or good.

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