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CAPACITY REQUIREMENT PLANNING (CRP)

CAPACITY REQUIREMENT PLANNING (CRP). 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

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CAPACITY REQUIREMENT PLANNING (CRP)

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  1. CAPACITY REQUIREMENT PLANNING(CRP) 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

  2. CRP also helps companies determine how much space they will need to hold these materials.

  3. It verifies that you have the sufficient capacity available to meet the capacity requirement for the MRP plans.

  4. 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

  5. Capacity Requirements Planning CRP: The process of determining how much labor and machine resources are required to accomplish the tasks of production. CRP translates the orders in the MRP system into hours of work by work center by time period. CRP verifies that there is sufficient capacity to process all orders due to be released within the planning horizon. CRP Computation:Requires a separate calculation of setup time & run time requirements for planned order releases & released order (schedule receipts). 6

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