Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following best describes capacity requirements planning?

1. A method for reducing costs in manufacturing

2. A technique for assessing facility load

3. A strategy to enhance marketing efforts

4. A framework for employee management

The correct answer is: A technique for assessing facility load

Capacity requirements planning is fundamentally a technique utilized to assess facility load. This process involves calculating the capacity needed at a facility to meet production demands over a specific period. By gauging both the existing capacity and the projected workloads, organizations can identify any potential shortfalls in capacity, which helps in making informed decisions about resource allocation, scheduling, and potential investments in additional infrastructure or workforce. The importance of this technique lies in its ability to provide a clear understanding of how well a facility can meet current or future production goals. It helps ensure that the right amount of resources—including machines, labor, and tools—are in place to effectively satisfy customer demand without incurring excessive costs or operational inefficiencies. In the context of capacity requirements planning, the emphasis is on operational efficiency and resource sustainability, differentiating it from other options that revolve around cost reduction, marketing strategies, or employee management, which do not focus on the assessment of facility load or capacity needs.