What aspect of business does the chapter on Capacity Management specifically address?

The chapter on Capacity Management specifically addresses the importance of aligning production with demand. This aspect is crucial for ensuring that a business can meet customer needs without incurring unnecessary costs or inefficiencies. Effective capacity management involves analyzing both the current and future demand for products or services and making adjustments to production capacity accordingly. This may include scaling up production during periods of high demand or scaling down when demand is low, all while ensuring that resources like labor and materials are utilized efficiently. By maintaining this alignment, businesses can avoid situations such as overproduction, which ties up capital and resources, or underproduction, which can result in lost sales and dissatisfied customers. Ultimately, effective capacity management is about optimizing production capabilities to respond appropriately to market needs, thereby supporting overall business objectives.