Which term refers to the function of establishing, measuring, monitoring, and adjusting capacity limits to execute all manufacturing schedules across levels including 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 function that establishes, measures, monitors, and adjusts capacity limits to execute all manufacturing schedules across levels, from resource requirements planning through rough-cut capacity planning, capacity requirements planning, and input/output control. It serves as the umbrella that links high‑level planning with shop‑floor execution, ensuring the right amount of capacity—machines, people, and tooling—is available when needed to meet the master production schedule.

Capacity planning alone is about forecasting future capacity needs; capacity control focuses on using and adjusting capacity in real time. Capacity requirements planning is a specific step that translates planned orders into capacity requirements. Input/output control is a shop-floor control technique that tracks work entering and leaving the system. Capacity management encompasses all of these activities, coordinating them to keep schedules feasible and bottlenecks under control.