Effective capacity is the maximum amount of work that an organization or individual is capable of completing in a given period due to constraints such as quality problems, delays, material handling, etc.
IT capacity planning involves estimating the storage, computer hardware, software and connection infrastructure resources required over some future period of time.
A common concern of enterprises is whether the required resources are in place to handle an increase in users or number of interactions.
[2] Capacity management is concerned about adding central processing units (CPUs), memory and storage to a physical or virtual server.
Advantage of lead strategy: First, it ensures that the organization has adequate capacity to meet all demand, even during periods of high growth.
One simple model distinguishes between short-, mid-, and long-term capacity planning (operational, tactical, and strategical, respectively).
Capacity decisions affect the production lead time, customer responsiveness, operating cost and company ability to compete.
[6] From a scheduling perspective it is very easy to determine how much capacity (or time) will be required to manufacture a quantity of parts.