Once you've come up with how many units you think you may sell in the future, based on the numbers in the past, you want to figure out how much you can produce. You want to think about how much of the product people can produce in the time given under normal conditions with the number of people you have, and based on the rate of productions - things like that. This then will help you determined how much equipment you'll need, or what type - like the bigger capacity coffee maker vs. the lesser capacity coffee maker that you all chose in the startup of your coffee shop. If you are functioning coffee shop - maybe this is a decision you make due to an expansion, vs. predictive numbers you've pulled based on the market and industry. This will also impact, as you've come to know, how many people you will need to help staff your location, so that you have the labor hours that you need in order to meet the capacity that you expect. What is the above describing? O Estimation O Capacity Planning O Planning Start Up Planning