Capacity Requirements Planning
The effective implementation of CRP can dramatically reduce stock levels and improve customer service and manufacturing productivity through better planning. The concept reviews these techniques and suggests what steps can be taken to implement it.
Capacity Requirements Planning Definition
Capacity requirements planning (CRP) is a process of establishing, measuring and adjusting the levels of capacity in an organisation within the context of Manufacturing Resource Planning (MRP 2) (CIPS: Glossary). It is a short-term capacity planning technique that entails evaluating the "ability of current resource levels to meet current orders and projected demand" (Pritsker, 1992:209), CRP helps to identify where and when utilisation problems can occur, so that preventive/alternative measures may be taken (van Weele, 2004).
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Capacity Requirements Planning References (4 of up to 20) *
- Allspaw, J. (2008) The Art of Capacity Planning. O'Reilly Media.
- Collier, D.A. and Evans, J.R. (2012). OM, Cengage Learning, Mason, OH.
- Davenport, T.H. (1998). Putting enterprise into the enterprise system. Harvard Business Review, July-August, pp.121-131.
- Carol, A. and Ptak, E.S. (2004) ERP: Tools, techniques, and applications for integrating the supply chain. 2nd ed. CRC Press.
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