What does capacity management aim to optimize?

Capacity management aims to optimize production capability. This involves ensuring that a company can produce the goods and services required to meet demand without excessive delays or underutilizing resources. Effective capacity management allows organizations to align their production processes with expected demand, thus maximizing efficiency and minimizing costs.

By focusing on production capability, businesses can avoid scenarios like overcapacity, which leads to wasted resources and increased costs, or undercapacity, which can result in lost sales and dissatisfied customers. Successful capacity management involves analyzing current production processes and adjusting them to meet dynamic market demands.

While inventory levels, financial resources, and marketing efforts are important aspects of a business's overall strategy, they are not the primary focus of capacity management. The essence lies in ensuring that production systems are adequately designed to support the overall operational goals.