Which process describes determining the amount of capacity required to produce in the future, potentially at aggregate/product-line (RRP), master-schedule level (R-CCP), and materials requirements planning (CRP)?

• A. Capable-2-promise
• B. Carrying cost
• C. CRP
• D. Capacity planning

Answer: (D)

Capacity planning is about forecasting how much production capacity will be needed in the future to meet demand. It looks at different levels of detail: at an aggregate/product-line level with rough-cut capacity planning, at the master-schedule level to compare the master schedule load against available capacity, and at the MRP level translating planned orders into capacity requirements (capacity requirements planning). This progression shows how you move from high-level capacity needs to detailed shop-floor requirements, ensuring the plan is physically feasible. Capable-to-promise is about what you can commit to deliver given current capacity, not the overall process of planning capacity. Carrying cost is the expense of holding inventory and is not about determining capacity needs. CRP is the detailed step within capacity planning that calculates capacity needs from the MRP plan, but the overarching process that encompasses all levels is capacity planning.