Of all the concepts that have been discussed so far, none is more important than capacity. After all, if you don't have sufficient capacity, you won't manufacture much! This lesson will start out with an overview of capacity and define a few terms, including design and effective capacity, and actual output. You'll explore how rough-cut capacity planning and capacity requirements planning (CRP) help measure available capacity. Then, you'll move on and examine a few capacity-use strategies as they relate to customer demand, technology, and other variables. You'll finish up by discussing three essential tools to help with capacity management: break-even analysis, decision trees, and decision theory.