09/22/2022
Production Capacity is very important while designing a business process. It determines how much production a business anticipates to be sold for next few years or months. According to that, one buys raw materials, equipment and other inputs so that the production capacity meets the demand. if a business invests too much into production capacity and the demand in the market is less then a lot of produced inventory can go waste. If the business doesn't use the planned capacity, then the business is losing the money it invested in building the capacity. There are lot of factors which determine the production capacity.
