Capacity Requirement Planning (CRP) is a short-range capacity planning module used to check the feasibility of the material requirements plan. True or False?

• A. True
• B. False
• C. It is a long-range planning tool
• D. It is a financial planning module

Answer: (A)

Capacity Requirements Planning focuses on verifying that the shop floor has the capacity to meet the material requirements plan generated by MRP. It’s a short-range tool that analyzes load at work centers and machines against available capacity over the immediate planning horizon. By using routing, work-center data, and current loads, CRP checks whether the planned orders from MRP can actually be executed, and highlights overloads or timing conflicts so the plan can be adjusted. Because it concentrates on short-term capacity issues tied to the MRP outputs, it is not a long-range planning tool and it is not a financial planning module. Therefore, the statement is true.