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3. Identify and briefly describe the steps in capacity planning process (30 Points) 4. What are the challenges to planning for capacity in service organizations? (20 Points) Capacity Strategy Formulation (Ref. p 49 Three primary strategies for capacity: Leading: Build capacity in anticipation of future demand increases . Following : Build capacity when demand exceeds current capacity Tracking : is similar to following strategy, but it adds capacity in relatively small increments to keep pace with increasing demand. Steps in capacity planning