Certified Supply Chain Professional (CSCP) Practice Exam

What does capacity requirements planning determine?

1. Amount of inventory needed

2. Amount of labor needed for production tasks

3. Total production costs

4. Number of suppliers required

The correct answer is: Amount of labor needed for production tasks

Capacity requirements planning (CRP) is a process designed to determine the capacity needed for production to meet the demands for goods or services. It specifically focuses on understanding how much labor and machine capacity is necessary to produce a desired amount of output within a certain time frame. By analyzing production schedules and the tasks that need to be completed, CRP helps managers identify the needed labor force for various production activities. It considers factors such as work hours, efficiency, and production rates to ensure that the workforce is adequately sized to meet the production demands, hence the selection of the need for labor. The other options relate to different aspects of supply chain management but do not specifically address the core function of CRP. While inventory levels, total production costs, and supplier requirements can be influenced by capacity, they fall outside of the immediate focus of capacity requirements planning, which is primarily concerned with labor and machine resource allocation.