The process of determining the production capacity needed by an organization to meet changing demands for products or services. It involves forecasting future requirements and ensuring adequate resources, infrastructure, and capabilities are available when needed.
From 'capacity' (Latin 'capacitas' meaning 'ability to hold') and 'planning' (French 'plan' meaning 'ground plan'). The systematic approach emerged during the Industrial Revolution when factories needed to optimize production capabilities, becoming more sophisticated with the rise of operations research in the mid-20th century.
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