Certified Supply Chain Professional (CSCP) Practice Exam

What is one of the main purposes of capacity requirements planning?

1. To evaluate past production performance

2. To assign each facility a load and perform load leveling

3. To calculate total manufacturing costs

4. To design new work centers

The correct answer is: To assign each facility a load and perform load leveling

One of the main purposes of capacity requirements planning (CRP) is to assign each facility a load and perform load leveling. This process involves determining the amount of production capacity needed to meet the specific product demands over a particular timeframe. By analyzing the load, CRP enables organizations to identify if their current capacity is sufficient or if adjustments are needed. Load leveling helps to ensure that production processes are balanced and optimized, preventing scenarios where one facility might be overworked while another is underutilized. This practice is crucial for maintaining efficient operations, reducing bottlenecks, and meeting customer demand consistently. Effective capacity planning allows businesses to allocate resources more strategically and improve overall productivity, which is vital for fostering growth and competitiveness in the supply chain.