Capacity Requirement Planning or CRP

This finds out whether there is adequate production capability in the individual departments and work cells to done the exact parts and assemblies such have been scheduled by Material Requirement Planning. Whether the schedule is not compatible along with capacity, then adjustments should be made either in plant capability or in the Material Requirement Planning schedule. Capacity adjustments can made moreover via temporary workers, labor hours, number of work shifts, inventory stockpiling, subcontracting, and on short-term level or innovative equipment investments, innovative plant construction, acquisition of existing company and so on long-term level.