What is the purpose of capacity planning in operations management?

The purpose of capacity planning in operations management is fundamentally about aligning production capabilities with expected demand. By determining the production capacity needed to meet demand, organizations can ensure they have the right amount of resources—such as machinery, labor, and technology—available to produce goods or services without delays or shortages. This proactive approach allows businesses to operate efficiently, reduce costs, and maximize customer satisfaction by ensuring products are delivered on time.

Capacity planning also involves forecasting future demand, which helps businesses strategize for growth or shifts in consumer behavior. This aspect of planning is crucial for making informed decisions regarding investments in new facilities or equipment and managing workforce levels effectively.

While other options mention important aspects of operations management, they do not capture the essence of capacity planning, which is specifically about matching production capabilities with demand requirements.