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Definition

Capacity requirements planning (CRP) is the evaluation of planned production to determine if it can be accomplished within the capacity limitations of manufacturing facilities. A capacity load projection is completed for each item in the master production schedule. The calculated load requirement is compared to available capacity, thus determining underutilization or overutilization of facilities.[1]

References

  1. ^ American Marketing Association. Dictionary. <https://www.ama.org/resources/Pages/Dictionary.aspx> (cited 12 May 2015).

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