Capacity Optimization is the process of adjusting available resources so they can handle demand efficiently without creating unnecessary idle capacity or operational bottlenecks. It involves analyzing factors such as workload, resource utilization, processing time, throughput, and demand patterns to determine how much capacity is needed and where it should be allocated.
In cloud computing, for example, capacity optimization can automatically scale computing resources according to application demand, reducing wasted infrastructure during quiet periods while maintaining performance during traffic spikes. The concept also applies to manufacturing, logistics, telecommunications, and workforce planning, where equipment, network bandwidth, storage, or personnel must be matched closely to changing workloads.
