Scenario: Wilson Industries, Inc.
Wilson Industries, Inc. is a multinational firm that designs and produces tourist nik-naks for major destinations worldwide. The company's board of directors is meeting to discuss changes that might be needed in the company's operations.
-One key issue the board is to examine is Wilson's ability to produce enough output to satisfy market demand, otherwise known as ________.

Question

Quizplus · Accepted Answer

Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. In this scenario, the board's examination of Wilson's ability to produce enough output to satisfy market demand falls under capacity planning. The other options, such as facilities location planning, process planning, and facilities layout planning, may also be important issues to examine, but they are not specifically related to the company's ability to meet demand.