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CAPACITY PLANNING "The maximum output of which an industry or factory is capable"1. That is how the Oxford Dictionary defines capacity. As this is the case the role of Capacity Management is integral in achieving this 'maximum' output. The operations manager has to make sure there are sufficient resources available for the organisation to meet the demand. This is a process of planning (looking at what will be required or what actions will be necessary for all the future operations) as well as controlling operations so they run according to plan. Management of capacity also involves "reacting to actual demand and actual capacity as it occurs"(Slack et al, 2001). Capacity is being estimated for future consumption. This has to be market focused "Knowing the rate of output can help in estimating or planning how long it will take to deliver an order and to plan for the materials required for...

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