Capacity planning determines how many units you can produce per period and when you need to invest in additional capacity. For startups, capacity is initially constrained by: manufacturing partner capacity, cash for inventory, and quality control bandwidth.
Key Takeaways
- Plan capacity 6-12 months ahead of demand.
- Batch sizing balances inventory cost vs stockout risk.
- Lead times for components drive minimum planning horizon.
- Cash for inventory is often a binding constraint for hardware startups.