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Outlines previous research on capacity planning and considers how the underlying ideas can be applied to higher education institutions (HEIs). Illustrates the components of operational and capacity plans for an HEI, pointing out the differences from and similarities to the manufacturing and service sectors; and discusses various components of the capacity plan (e.g. classroom utilization, enrolment, scheduling etc.) in more detail. Believes that this approach to resources would improve on the present US system where external pressures (e.g. politicians, donors etc.) rather than need may determine expansion, but recognizes the practical barriers to this and calls for further research.

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