What is strategic capacity planning?

Strategic capacity planning is a process that seeks to balance the use of available sources to use the best effect and at the same time lead to the optimal output level. In many companies, this includes a great deal of attention to every step in the production process to ensure that only small or no waste is created during this process, and production costs are maintained as low as possible, while the largest amount of goods and services are created and sold. There are a number of factors concerning the planning of strategic capacities, including understanding the demand of customers and the company's ability to adjust their activities to suit this demand.

Thinking in terms of strategic capacity planning is necessary access to understanding the state of the market. In an economy that is powered by customers' demand, it is important to find out how it can be adequately expected that units can be sold on the market and at what price. Data of this type help to determine the objectives of the production process in that the companyI can also use data to determine how much they can invest in the method of resources and still generate enough products that will sell and earn at least some profit from each unit sold.

For this purpose, strategic capacity planning will try to identify the costs associated with the production of a certain number of finished products and compare this number with the price that each unit can control on the current market. The aim is to look closely at every component relevant to the production, sale and marketing of the product and achieve the unit price that generates return and remains within the price range, which is likely to be attractive to customers. It usually means solving each step in the process to identify the cost -effective means to achieve the desired goal.

The overall approach to strategic Capamus planning will begin with the selection of raw materials, SUCe continuesThe tangent production process includes administrative and supporting costs associated with the business model and even includes the cost of transporting the goods sold to the buyer. Strategic capacity planning allows you to maintain low stocks, but still at a level that can satisfy consumers' demand and effectively avoid paying taxes from high inventory of finished goods while preventing temporary deficiency to make customers look for similar goods from competitors.