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What is meant by capacity requirement planning and describe the process of planning in production and operation management?
Bhavuhiren
Capacity Requirements Planning, also known as CRP, in MRP parlance, is the technique that allows business to
plan ahead to determine how large their future inventory capacity needs to be in order to meet demand. CRP
also helps companies determine how much space they will need to hold these materials. It verifies that you
have the sufficient capacity available to meet the capacity requirement for the MRP plans. It thus helps the
planners to make the right decisions on scheduling before the problem develops.
The key elements of the Capacity Requirements Planning process are of establishing, measuring, and adjusting
the limits or levels of the production capacity based on the process of determining the amount of labor and
machine resources required to accomplish the tasks of production. Inputs of the CRP process are the Order
Entry modules in a MRP system which facilitates translating the orders into hours of work by the work center
by time period via the use of parts routings and time standards.
Capacity Requirements Planning, also known as CRP, in MRP parlance, is the technique that allows business to
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