Capacity requirements planning (CRP)
Published
October 22, 2026
Last updated
October 22, 2026
Definition
Capacity requirements planning (CRP) checks whether each work center can produce what a material requirements planning (MRP) plan calls for. CRP takes MRP planned and released orders, applies their routings, and converts them into time-phased labor and machine hours per work center. It then compares those hours with available capacity and flags overloads and underloads by period.
In the MRP II planning hierarchy, CRP comes after rough-cut capacity planning (RCCP) and MRP. RCCP tests the master production schedule against bottleneck resources only, while CRP runs a detailed check on every work center before scheduling. Broader capacity planning sets overall production capability at a strategic, aggregate level; CRP is detailed and near-term.
For FP&A and operational planning teams, CRP results drive cost decisions. An overload can lead to overtime, extra shifts, outsourcing, or capital expenditure, and each of those feeds cost forecasts and margin. Connecting CRP output to supply planning and the financial plan shows what a production plan will cost before you commit to it.
Frequently Asked Questions
What is the difference between capacity planning and CRP?
Capacity planning is strategic and sets an organization's overall production capability. CRP is tactical and checks near-term load against available capacity for each work center and period.
How is CRP calculated?
The capacity requirement for each operation equals standard time (setup plus run time) multiplied by the order quantity. CRP sums these requirements per work center and period, then compares the total with available capacity based on shifts, efficiency, and planned downtime.
How does CRP differ from MRP and RCCP?
MRP determines which materials you need, how many, and when, while CRP checks whether each work center can handle the resulting load. RCCP runs earlier and tests the master production schedule against bottleneck resources only.
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