Capacity Requirements Planning (CRP)

Definition

Capacity requirements planning (CRP) is the evaluation of planned production to determine if it can be accomplished within the capacity limitations of manufacturing facilities.

A capacity load projection is completed for each item in the master production schedule. The calculated load requirement is compared to available capacity, thus determining underutilization or overutilization of facilities.

See Also

Inventory

 

References

  1. American Marketing Association, AMA Dictionary. (May 2015)

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