What does CRP stand for, as used in manufacturing planning?

• A. Customer requirements planning
• B. Capacity requirements planning (CRP)
• C. Cycle time planning
• D. Cost reduction planning

Answer: (B)

Capacity needs and feasibility of the production plan are what CRP evaluates. In manufacturing planning, CRP translates the master production schedule into the capacity it will require—think machine hours, labor hours, and other shop-floor resources—and then compares that to the available capacity. The goal is to see if the plan can actually be executed as scheduled. If a gap shows up, you adjust the plan or resources (overtime, substitutions, rescheduling, outsourcing, etc.) to close the gap. That’s why the term is Capacity Requirements Planning. The other options don’t describe this resource-feasibility check: they aren’t standard terms for what CRP does.