Capacity modeling is determined by the aggregate forecast. This gains leans on the forecast accuracy in order
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Capacity modeling is determined by the aggregate forecast. This gains leans on the forecast accuracy in order to drive operational performance. How the firm deploys the capacity plan strictly depends on what the forecast projects in relation to growth, seasonality and general economic conditions among other things.
As any model the capacity plan may be modified over time. However, in services the impact of labor agility is keenly felt especially if the forecast error is high!
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