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Chapter Objectives
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Define capacity and distinguish it from capability.

Describe how capacity relates to value and profitability for B2C and B2B transactions.

Describe how demand that varies from design capacity influences profitability.

Describe the role individual resources and constraints play in determining system capacity.

Make the calculations necessary to create demand chase and level production aggregate plans.

Describe the information inputs and logic necessary for rough-cut capacity plan.

Describe the information inputs and logic necessary for capacity requirements planning.

Calculate required and available capacity for a capacity requirements plan.

Describe how yield management aids services in maximizing revenues.

Perform the calculations to determine the number of customers to overbook.







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