What Is Capacity Management?
Understand how Capacity Management fits into the supply chain
Capacity management is the concept that capacity should be understood, defined and measured for each level in the organization to include market segments, products, processes, activities and resources. In each of these applications, capacity is defined in a hierarchy of idle, non-productive and productive views. In simpler terms, capacity management refers to ensuring that a business has sufficient resources to always maximize their output, whether that be regarding production, shipping or something else.