In capacity planning, the “base case” refers to:

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To begin, let’s break down what the base case means in capacity planning. It serves as a reference point against which other options are evaluated.
Option 1: 'Doing nothing and accepting the consequences' This aligns with the conventional understanding of a base case in capacity planning, where the current state is used as a benchmark without additional investments or changes.
Option 2: 'Outsourcing production' While outsourcing is a potential strategic move to adjust capacity, it is not the baseline or default scenario; it represents a transformation option rather than the reference point.
Option 3: 'Implementing the most expensive alternative first' This describes selecting a growth or capacity-expansion option without evaluation of the baseline, which contradicts the idea of a base case being the neutral starting point.
Option 4: 'Using simulation to predict demand' Simulation is a tool for analysis and forecasting used to explore scenarios, not the baseline scenario itself; the base case is typically a concrete, default state without modeling changes applied.
In summary, the base case is the default, current-state scenario used for comparison, which corresponds to doing nothing and accepting the consequences. The other options depict actions or tools that modify or inform the plan rather than establish the baseline.

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In capacity planning, the “base case” refers to:

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