Capacity management is the act of ensuring that a business maximizes its full potential activity and production at all times under a condition. Therefore when there is a demand, it will measure how much a company or organization can achieve to produce or sell within a given time; therefore, the market here is the condition that will determine the flow of a business. Resource management is planning the resource in the company for a possible way to make the business marketable and productive.
However, managing capacity with demand creates loose transparency in business with the employees and the managers. For instance, when the workers don’t have enough and proper chain of supply of goods in a company, there will be less trust in how goods and services are delivered to the customers. In contrast, managing capacity with resources will build trust between the employees and manager since there will be a resource to enable utilization planning in a business, e.g., how good can be supplied and delivered to customers appropriately.
Managing capacity with recourse management can help the company predict a business’s future, whether its level of demand is high or low since the employees will find it easy to manage and control the industry even with a short demand or long demand on the product, in contrast to managing capacity with demand where the company will not know the state of the market of goods to the customers since they depend on their customers to alert them on demand good to supply when demand raises but not when it’s abrupt.
Moreover, managing capacity with demand in a company consumes a lot of time when it comes to service delivery to the clients since the employees will have high pressure from the manager on how to deliver the products to the clients, also excessive work to the employer in terms of selling and marketing due to lack of proper planning. On the other hand, it’s conducive to the workers since there is a project within the company that provides an overview of everyone and everything involved in the project so that it can make work easier and time conducive to the employees on how to match the demand level of the product and the supply.
Therefore, since capacity management is the ability to match demand according to business priorities from the customers and the market’s nature by forecasting the future and its problems, a company or an organization should be able to plan, schedule, and allocate the workers to various roles in the business according to the type of management to be able to make more informed decisions about which software to invest in improving the production and the service of goods in a company. Since capacity change due to the external influence such as seasonal demand, its interest for the managers within those companies, industries, or organizations to observe such so that they don’t encounter any difficulties in their market and supply of products.