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The goal of capacity planning is to minimize this discrepancy. Demand for an organization's capacity varies based on changes in production output, such as increasing or decreasing the production quantity of an existing product, or producing new products. Capacity can be increased through introducing new techniques, equipment and materials, increasing the number of workers or machines, increasing the number of shifts, or acquiring additional production facilities. By definition, design capacity is the maximum output that can possibly be attained (Stevenson 1999).
Question 1b
In the short term, capacity planning concerns issues of scheduling, labor shifts, and balancing resource capacities...
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