Which capacity function is described as establishing, measuring, monitoring, and adjusting capacity limits to execute all schedules, performed at four levels: resource requirements planning, rough-cut capacity planning, capacity requirements planning, and input/output control?

• A. Capacity planning
• B. Capacity control
• C. Capacity management
• D. CRP

Answer: (C)

Capacity management is the ongoing function that sets capacity limits, measures usage, monitors performance, and makes adjustments so every schedule can be executed. It acts across multiple planning levels to ensure the operation has the right capacity at the right times. The levels listed—resource requirements planning, rough-cut capacity planning, capacity requirements planning, and input/output control—represent stages within capacity management. Resource requirements planning looks at broad resource needs; rough-cut capacity planning uses high-level data to test feasibility; capacity requirements planning translates those plans into detailed capacity requirements; and input/output control monitors actual flow and adjusts to keep production on schedule. This overarching activity is what ties planning to execution, balancing demand with available capacity. The other terms are more narrowly focused: capacity planning concentrates on estimating needed capacity, capacity control centers on enforcing capacity limits during execution, and CRP is a specific step within capacity management that calculates capacity requirements for given plans.