What is capacity planning?

Lead strategy refers to capacity planning that considers future demands and production forecasts. Predicting future product demand involves both the hiring of employees as well as the stockpiling of the resources needed to make those products. There is a risk involved with lead strategy capacity planning in that if predictions are wrong and there is no uptick in demand, there will be no work for employees and an abundance of inventory.

Match strategy is the middle ground between lead and lag. This is what the best capacity planners can implement allowing the company maximum flexibility. This strategy requires a constant reassessment of demand, projections, and market shifts to accurately determine future production needs. By not tying up all of a company's assets in stockpiled resources or additional employees in anticipation of future orders, planners using the match strategy balance production and prediction.