Capacity requirement planning (CRP)

Capacity planning is the process by which a company determines how much it needs to produce and assesses its potential to achieve those production goals. Capacity planning, also known as capacity requirement planning (CRP), is the process of outlining the estimation for each process in accordance with the order of manufacturing, making adjustments, and then planning the work of each process so that the company can achieve its goal without exerting additional effort that will be ineffective.