Which planning function utilizes material requirements planning (MRP) output by converting it into loads and matching it to an available work center?
Which planning function utilizes material requirements planning (MRP) output by converting it into loads and matching it to an available work center?
Capacity requirements planning (CRP) is the planning function that takes the output from material requirements planning (MRP) and converts it into workloads, which are then matched to available work centers. CRP assesses the capacity needs, including labor and machinery, and determines if the production plan developed by MRP can be executed within the available capacity. This ensures that potential capacity constraints are identified and addressed.
The correct answer is C - Capacity requirement planning.
Capacity requirements planning (CRP) determines in detail the amount of labor and machinery required to carry out production tasks specified in the material requirements plan (MRP), translating MRP orders (measured in units) into hours of work for each work center in each time period. CRP is the most detailed level of capacity planning. C is the correct answer.
CRP takes the information from the MRP system, which includes details about what materials are required and when, and uses it to assess the capacity needs of the manufacturing operation.
A looks better
C: Capacity Requirements Planning (CRP) is a planning function that ensures that the production plan developed by material requirements planning (MRP) is feasible given the available capacity of work centers or resources. CRP takes the output of MRP, which includes the timing and quantity of materials required for production, and matches it with the capacity of work centers to determine if the production plan can be executed as planned. CRP helps identify potential capacity constraints and allows for adjustments to the production schedule to optimize resource utilization and meet production requirements.