- Created by: Sophie.Mcintyre
- Created on: 01-02-17 10:23
- It can enable it to meet the level of demand for a product.
- Efficient capacity management can ensure that a firm is not spending too much on capital equipment and other resources.
- Some industries have seasonal production. So they need to make sure they have the capacity to cope with peak production.
- also seasonal demand- need to plan capacity.
- If a firm has no competition, a lack of capacity may not be an issue, as they won't find alternative suppliers.
- If in a competitve environment, the business may use outsourcing or sub-contracting.