Capacity planning is the technique of figuring out the manufacturing capacity required by a business to fulfill shifting demands for its products. A disparity between the capacity of a firm and the demands of its consumers leads to inefficiency, either in under-utilized resources or unsatisfied buyers.
Match Capacity Strategy
The match capacity strategy (tracking strategy) is the middle way between the Lead and Lag Strategies. As opposed to significantly boosting capacity according to anticipated or actual increases in demand, the Match Strategy focuses on little, incremental adjustments to capacity determined by shifting conditions in the market. Although match demand strategy (tracking capacity strategy) requires much more effort and is difficult to achieve, it is far more risk-averse than other capacity planning alternatives.