Capacity planning is a process used by businesses to determine the necessary resources, such as infrastructure, manpower, and technology, needed to meet future demand for their products or services. This process involves forecasting future demand, evaluating current capacities, and identifying gaps between the two. By effectively managing capacity, businesses can ensure that they have the necessary resources to meet customer demand while minimizing costs and maximizing efficiency. Capacity planning is crucial for businesses to ensure their competitiveness and sustainability in a constantly evolving market environment.