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Which of the following is the first step in the iterative capacity planning process?

  1. Determine the load per time bucket

  2. Calculate the capacity required for production

  3. Calculate the capacity available

  4. Adjust available capacity as needed

The correct answer is: Calculate the capacity available

The first step in the iterative capacity planning process is to calculate the capacity available. This step is essential because it establishes a baseline for understanding what resources are currently at your disposal before any further analysis or planning can proceed. Knowing the available capacity allows organizations to assess their current capabilities and constraints, serving as a reference point for identifying whether additional resources are needed to meet future demand. Once the available capacity is understood, the next steps can involve determining the load per time bucket and calculating the required capacity based on anticipated production needs. By starting with a clear view of available capacity, planners can more effectively align resources with demand, adjust capacities, and make informed decisions to optimize production processes and meet customer requirements.