Capacity management helps businesses meet consumer demand by cost-effectively improving their production efficiency over a set period. It is accomplished by removing bottlenecks in the production process and utilizing available resources, which leads to maximum output. Using this strategy offers several benefits for businesses, such as streamlined operations, increased market share, customer retention and acquisition, and better inventory and supply chain management. However, market demand keeps changing due to many external factors, such as consumer choices, seasonal changes, macroeconomics, and the industrial revolution. All this may affect how a business is run and result in a loss of capacity. So to achieve maximum efficiency, a company needs to track the data about its human and material resources, inventory, expected profitability, etc. All this combined constitutes an effective capacity management strategy. It can use this information to match capacity to demand and efficiently allocate resources to achieve its target. Although there are many resource capacity planning tools to calculate and organize these data, knowing the strategy behind all this is still a required skill.

Question: After reading the opinion above, what is your response? What may be some risks or drawbacks? Please be detailed in your opinion.