Abstract: In a wafer fabrication plant, the capacity management process 10 begins with identifying an initial capacity plan based on a demand plan (step 12). For each Product Group in the initial capacity plan a consumption sensitivity factor is defined (step 14). Next, a bottleneck capability variable is calculated (step 16). The capacity boundaries for each of the product groups are next determined (step 18). Thereafter, in the first of two branches, a determination of maximum wafer output is then performed for changing Product Group mixes to determine a maximum (step 20). The Product Group mix giving maximum wafer output is then determined for the fabrication plant (step 22). In the second branch, a determination of maximum profit is performed for changing Product Group mixes (step 24), then the Product Group mix giving maximum profit is determined for the fabrication plant (step 26).