What are the time duration for capacity planning, and which one provides the greatest value for strategic capacity planning?

Time frames for capacity planning are short term, medium term, and long term

The most ideal for strategic capacity planning is the long term

Explanation:

Capacity planning is used to determine optimum use of available resources, and this is used in deciding if a business will continue with its present operations, modify operations, or start a new process.

Capacity planning is classified into 3 based on timeline:

- Short term capacity plannjng is one that considers daily, weekly, and quarterly targets of production

- Medium term capacity planning involves strategic planning within 2 to 3 years

- Long term capacity planning ensures resources (people, machinery, equipment, working hours) are available to meet organisation long-term production needs

The most ideal time frame for strategic planning is the long term because there may not be an adequate match between resources allocation and production needs of the business.

Long term time frame gives the flexibility not making necessary adjustments.

For example if demand is less than the companie's production capacity, there can be a reduct in resources allocated.

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