Capacity requirements planning (CRP)

Capacity requirements planning (CRP),

Definition of Capacity requirements planning (CRP):

  1. Quick but rough method of capacity planning in which the demand or load on each resource or work center is added up, without regard to setup time. CRP is used usually to determine if a proposed master production schedule (MPS) is practicable.

  2. Capacity requirements planning is the process through which a company—primarily in manufacturing—figures out how much product it needs to make, and determines if it has the ability to meet its production goals.

  3. Capacity requirements planning (CRP) is the process of discerning a firm's available production capacity and whether it can meet its production goals. The CRP method first assesses the company's planned manufacturing schedule. Then, capacity requirements planning weighs this schedule against the company's actual production capabilities to see if the current capacity can successfully meet the existing production schedule.

How to use Capacity requirements planning (CRP) in a sentence?

  1. Capacity requirements planning (CRP) is the process of discerning a firm's production capacity and whether it can meet its production goals.
  2. Conducting a CRP analysis is a critical management tool, as it helps a company to know if it can meet the demand for its product.
  3. Capacity requirements planning is also the name of an enterprise application—software that manages the CRP process for a company.

Meaning of Capacity requirements planning (CRP) & Capacity requirements planning (CRP) Definition