The function of Capacity Requirements Planning (CRP)is to
A) Insure accurate inventory counts
B) Convert shop orders into scheduled work loads for factory work centers
C) Verify that the bill of material is accurate
D) Calculate "encumbered" inventory
E) Confirm that the MPS is accurate

Question

Quizplus · Accepted Answer

The main function of Capacity Requirements Planning (CRP) is to take the output from Material Requirements Planning (MRP) and convert the planned orders into scheduled workloads for factory work centers. This is done to ensure that production capacity is aligned with demand and that lead times are met. Accuracy of inventory counts, bill of material, encumbered inventory, and MPS confirmation are important factors in the success of CRP, but they are not the primary function.

The Function of Capacity Requirements Planning (CRP)is to