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Definition of

capacity requirements planning

Operations & Production

computerized system for planning resource requirements a computerized tracking process that translates production requirements into practical implications for manufacturing resources. Capacity requirements planning is part of manufacturing resource planning and is carried out after a manufacturing resource planning program has been run. This produces an infinite capacity plan, as it does not take account of the capacity constraints of each workstation. Where the process is extended to cover capacity requirements, a finite capacity plan is produced. This enables loading at each workstation to be smoothed and determines the need for additional resources.

Definitions of ’capacity requirements planning’ and meaning of ’capacity requirements planning’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’capacity requirements planning’ and other financial terms with our online QFINANCE Financial Dictionary.

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