Certified Supply Chain Professional (CSCP) Practice Exam

What is the purpose of a capacity requirements plan?

1. To allocate budget for manufacturing

2. To verify actual output against projections

3. To identify what capacity will be needed to meet production goals

4. To design the layout of manufacturing facilities

The correct answer is: To identify what capacity will be needed to meet production goals

The purpose of a capacity requirements plan is to identify what capacity will be needed to meet production goals. This involves assessing the anticipated demand for products and determining the amount of production capacity necessary to fulfill that demand effectively. By creating a capacity requirements plan, organizations can ensure they have the right resources in place – including equipment, labor, and facilities – to meet future production targets. This proactive approach helps in aligning capacity with strategic business goals, avoiding bottlenecks, and ensuring the efficient use of resources. Other options, while relevant to manufacturing and operations management, do not specifically encapsulate the primary focus of a capacity requirements plan. For example, budget allocation pertains more to financial planning rather than operational capacity, verification of output involves performance measurement rather than planning capacity, and facility layout design relates to the physical arrangement of production systems rather than determining how much capacity is needed. Thus, identifying capacity needs aligns closely with the core objective of a capacity requirements plan.