Certified Supply Chain Professional (CSCP) Practice Exam

Capacity requirements planning translates which of the following?

1. Sales orders into production timelines

2. MRP orders into hours of work for each work center

3. Budgets into actual costs

4. Supplier capabilities into production norms

The correct answer is: MRP orders into hours of work for each work center

Capacity requirements planning is a critical function within supply chain management that specifically deals with ensuring that the production facilities have the necessary capacity to meet the demands laid out by the Master Production Schedule (MPS) and Material Requirements Planning (MRP). The correct choice emphasizes the process of converting MRP orders into specific requirements for labor and machine hours for each work center. This involves analyzing the planned orders generated by MRP, which indicates what needs to be manufactured and in what quantities, and translating these into the actual time and resources needed at different stages of the production process. By doing this, businesses can anticipate any potential capacity limitations and make necessary adjustments to resources or schedules to avoid bottlenecks and meet their production goals. In contrast, other options focus on different aspects of supply chain management. For example, translating sales orders into production timelines pertains to scheduling but does not specifically address capacity needs. Similarly, converting budgets into actual costs relates to financial management rather than the capacity planning process, and translating supplier capabilities into production norms deals with supplier management, which is separate from internal capacity planning. Each of these processes contributes to effective supply chain management but fulfills distinct roles that do not directly focus on capacity requirements.