Capacity planning

Imagine you have a big jar of your favorite candy, and you want to make sure you have enough for a party that's coming up. Capacity planning is like figuring out how much candy you need to put in that jar so that you have enough for all of your friends who are coming over.

But instead of candy, capacity planning is for businesses and organizations to figure out how much of a product or service they need to make or have available. They want to make sure they have enough for all their customers, but not too much so they don't waste resources.

To figure out how much they need, they look at things like how much they sold in the past, how many customers they expect, how fast they can produce or provide their product or service, and how much materials or resources they have available. They use all these things to come up with a plan for how much of their product or service they need to make or have on hand.

Just like with your candy jar, it's important for businesses to plan ahead and make sure they have enough of what they need, but not too much, so they can be as efficient and successful as possible.