Could you please explain the following in depth: When I am engaged in capacity planning for either t

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Could you please explain the following in depth:

When I am engaged in capacity planning for either type of system, why would it be unwise to try to set capacity equal to my projected average workload? Stated another way, why would any manager want to establish a capacity level that purposely targets less than 100% utilization for the resources in question?

If 100% utilization is not the right target, what is? What should be considered when we choose a planned utilization level for resources we are putting in place?

 
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