Topic

Strategic Capacity Management

Instructions

What is capacity management and why is it an important focus for firms?
How does one execute capacity planning?
Compare and contrast capacity planning for service and manufacturing businesses.

Answer Preview

Capacity management is one of the processes that is used to manage information technology. Notably, the primary objective of capacity management is to ensure that information technology is correct-sized to meet both present and future business needs in a cost-effective way. One of the popular interpretations of capacity management is explained in the ITIL framework. It is critical for business organizations to focus on capacity management because it is responsible for ensuring that sufficient capacity is accessible at all moments to meet the agreed requirements of the business organization in a cost-effective way.

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