How is capacity management important in the organisation?

Capacity management:

Capacity management is a procedure which seeks to make sure that the organisation can control at optimum capacity whenever maintaining customer satisfaction stages. Two main differences while trying to manage capacity exist for a service organisation while contrasted to a manufacturer.

Not like the physical goods, services cannot be stored thus it is probably the service organisation will be by using chase or demand management strategy quite than a level demand strategy, particularly when volatile customer demand exists.