What does Capacity Planning aim to determine?

Capacity Planning is a crucial aspect of logistics and supply chain management that focuses on understanding and preparing for production needs based on anticipated demand. It seeks to identify the necessary production capacity required to fulfill customer orders at the right time and in the right quantity. This involves analyzing current resources, forecasting future demand, and ensuring that the required facilities, equipment, and workforce are in place to meet these needs effectively.

By determining the production capacity needed to meet demands, organizations can optimize their operations, avoid underproduction or overproduction, and ensure that resources are allocated efficiently. This foundational element not only helps in maintaining customer satisfaction by delivering products on time but also plays a vital role in managing costs and improving overall operational performance.

The other options, while related to logistics in various capacities, do not capture the primary focus of Capacity Planning, which is centered on aligning production capabilities with demand projections. Understanding this focus is essential for anyone involved in logistics planning and operations.