The capacity requirements plan is used primarily to:

The capacity requirements plan is used primarily to balance capacity and load at work centers. A

work center is a location where one or more resources perform a specific operation or a group of

operations. Capacity is the amount of time or output that a work center can offer for production

activities. Load is the amount of time or output that a work center is required to produce based on

the planned production schedule. Balancing capacity and load means matching the available capacity

with the required load, so that there is no excess or shortage of capacity at any work center.

The capacity requirements plan is a report that shows the projected load and capacity of each work

center over a planning horizon. It is derived from the master production schedule (MPS), which

specifies the quantity and timing of finished goods to be produced, and the bill of materials (BOM),

which specifies the components and materials needed for each finished good. The capacity

requirements plan also uses the routing file, which specifies the sequence of operations and work

centers required for each finished good, and the work center file, which specifies the capacity and

availability of each work center. The capacity requirements plan can help to identify any gaps or

surpluses in capacity at each work center and to take corrective actions, such as revising the MPS,

rescheduling operations, adding or reducing resources, or outsourcing production.

The other options are not the primary uses of the capacity requirements plan. Calculating the level of

available capacity is an input to the capacity requirements plan, not an output. The level of available

capacity is determined by the work center file, which contains information such as shifts, hours,

efficiency, utilization, and maintenance of each work center. Determining the overall product load

profile is not a use of the capacity requirements plan, as it does not consider the product mix or

demand variability. The overall product load profile is a general estimate of the total production

volume or demand over a period of time. Determining the priority of orders is not a use of the

capacity requirements plan, as it does not consider the due dates or urgency of orders. The priority

of orders is determined by using priority rules or dispatching methods, such as first-come-first-served

(FCFS), shortest processing time (SPT), earliest due date (EDD), or critical ratio (CR).

Reference := Capacity

Requirements

Planning

(CRP):

Definition

and

Procedures, Capacity

Requirements Planning (CRP Plan and Strategies) - ERP Information, Definition of Capacity

Requirements Planning (CRP) - Gartner …