Capacity requirements planning (CRP):
A)uses ABC analysis as an integral part of the process.
B)is essential to minimize in-house inventories.
C)performs for manufacturing resources what MRP does for materials.
D)ignores the human resources required,and focuses on needed machine resources.
E)calculates the service level by dividing average inventory carried by annual sales.

Question

Quizplus · Accepted Answer

Capacity requirements planning (CRP) performs for manufacturing resources what MRP (materials requirements planning) does for materials. It helps to ensure that the resources needed to produce a specific quantity of a product are available when needed. ABC analysis, minimizing in-house inventories, ignoring human resources, and calculating service level are not directly related to CRP.

Capacity Requirements Planning (CRP)