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The Importance of Capacity Planning

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Why is capacity planning strategically important?

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Solution Summary

This solution provides you with a brief definition or explanation of what capacity planning is. It then gives three solid reasons as to why capacity planning is strategically important.

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Capacity planning may be defined as a process used to determine how much capacity is needed and when it is needed in order to begin manufacture or production of a new product. It is an analysis of what a company is capable of producing versus what the expected demand of its product will be. ...

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