Capacity requirements planning (CRP) is the function of establishing, measuring, and adjusting limits or levels of capacity. The term CRP in this context refers to the process of determining in detail the amount of labor and machine resources required to accomplish the tasks of production.

CRP is one of the management tools. It helps the company to use its resources efficiently by making its production process accurate. It determines the capability of the production goal of the company.

Re-evaluation of CRP is more important. It mainly depends on the type of business and the type of industry.

Importance of Capacity requirements planning

  • Helps the company to determine how much it has to invest in employee, equipment, and material
  • Helps to found the company’s place in the market
  • Helps to meet the customer demand
  • Helps to do on-time delivery of the products or services

Get more definitions about capacity requirements planning (CRP) and other ERP related terms here.


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