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.[1]

 

References

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

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