Capacity requirement planning (CRP) converts the material plan into labor and machine workloads.

Question

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Capacity requirement planning (CRP) is a process that uses the material requirements plan (MRP) to determine the labor and machine resources needed to meet production requirements. It takes into account factors such as capacity constraints, lead times, and scheduling to ensure that there is sufficient capacity to complete production on time. Therefore, the statement "Capacity requirement planning (CRP) converts the material plan into labor and machine workloads" is true.

Capacity Requirement Planning (CRP) Converts the Material Plan into Labor