Glossary
Capacity planning
Making sure you have enough machines, labor, and time to meet demand.
Technical definition
The process of matching available finite capacity to forecast and firm demand over a planning horizon.
Formula
Capacity utilization = load ÷ available capacity
Manufacturing example
Planning a peak season by adding a shift on the bottleneck line is capacity planning.
Common misconception
Capacity planning is not only about adding machines; sequencing and changeover reduction add effective capacity too.
Why it matters operationally
Under- or over-provisioning capacity both cost money; good planning balances them.
Related terms
Put capacity planning to work
See how ConstraintFlow turns operational concepts into optimized decisions.