PRODUCTION & RESOURCE LOAD

Capacity requirements planning (CRP)

Also called
Production capacity requirements planning
Abbreviation
CRP
Reading time
3 minutes

Capacity requirements planning translates planned production work into demand on resources such as work centers, machines or labor. It compares that load with available capacity over defined periods.

CAPACITY REQUIREMENTS PLANNING IN PRACTICE

  1. Calculate the loadApply the routing and relevant time standards.
  2. Compare availabilityUse calendars and resource constraints.
  3. Resolve the gapAdjust the plan and verify feasibility.

Use the agreed units, actual records and approved procedures for your operation.

A WORKED EXAMPLE

40 required hours. 32 available hours.

A simplified plan calls for 1,200 units at two minutes of processing per unit on one work center. That equals 2,400 minutes, or 40 hours, before any additional setup or allowance. If the period has 32 available hours, the simplified load exceeds capacity by eight hours. Having all the components on hand does not remove that gap. The planner needs an approved, feasible change to resources, quantities or dates.

WHAT THIS MEANS FOR YOUR QUOTE

Agree the requirement before comparing quotes

Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.

A LITTLE MORE CONTEXT

Questions about Capacity requirements planning

Is CRP the same as material requirements planning?

No. Materials and resource capacity are related planning questions with different inputs.

Does an overload report create capacity?

No. It identifies a gap requiring an operational decision or plan change.

Does every planning system enforce finite capacity?

No. Behavior depends on the system, settings, resources and planning scope.

Source & example notes

Microsoft Learn: finite capacity planning.

Sources provide background on the linked topic. Product documentation describes a particular implementation; confirm the rules, contract and procedures that apply to your operation.

Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.

Last updated: · 3PL Hub

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