Capacity planning helps determine the level of resources including human that will be needed to meet the production targets of a company. Capacity is contingent on the company forecasting the future demands + supply chain availability.
There are many ways a company can increase their capacity, some of these ways include:
> Hiring more staff or implementing additional shifts, or outsourcing.
> Having your current staff working overtime.
> Sometimes it is more feasible to outsource some of the work load to other companies.
> Increasing current plant and machinery.
> Increasing your inventory or taking back orders from client’s
Always keep in mind you need to weigh all the pro’s and con’s of each as there is always repercussions to each decision, one must make sure that they look at the long term impact before committing to their decisions.