|Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products.
In the context of capacity planning, "capacity" is the maximum amount of work that an organization is capable of completing in a given period of time. the phrase is also used in business computing as a synonym for Capacity Management
A discrepancy between the capacity of an organization and the demands of its customers results in inefficiency, either in under-utilized resources or unfulfilled customers. The goal of capacity planning is to minimize this discrepancy.