Capacity – Physical Flows

1) The capability of a system to perform its expected function.
2) The capability of a worker, machine, work center, plant, or organization to produce output per time period.
Capacity required represents the system capability needed to make a given product mix (assuming technology, product specification, etc.). As a planning function, both capacity available and capacity required can be measured in the short term (capacity requirements plan), intermediate term (rough-cut capacity plan), and long term (resource requirements plan).