Which statement best describes the difference between capacity planning and material requirements planning (MRP)?

Which statement best describes the difference between capacity planning and material requirements planning (MRP)?

• A. Capacity planning focuses on material availability for production.
• B. MRP ensures timing for demand forecasting.
• C. Capacity planning ensures sufficient resources to meet demand; MRP ensures material availability and timing for production.
• D. MRP ensures capacity utilization.

Answer: (C)

Capacity planning is about ensuring there will be enough resources—people, machines, and space—to meet the expected workload. It looks at whether the operation has the capacity to handle demand and where bottlenecks might occur, so the shop can be staffed and equipped appropriately. MRP focuses on materials: it makes sure the right parts and components are available when production needs them and in the right quantities. It uses the bill of materials, lead times, and current inventory to schedule orders so that materials arrive just as they’re required for production. The statement that best describes the difference is that capacity planning ensures sufficient resources to meet demand, while MRP ensures material availability and timing for production. The other ideas mix up responsibilities: capacity planning isn’t about material availability; MRP doesn’t directly ensure demand forecasting timing; and MRP isn’t about maximizing capacity utilization.

Capacity planning is about ensuring there will be enough resources—people, machines, and space—to meet the expected workload. It looks at whether the operation has the capacity to handle demand and where bottlenecks might occur, so the shop can be staffed and equipped appropriately.

MRP focuses on materials: it makes sure the right parts and components are available when production needs them and in the right quantities. It uses the bill of materials, lead times, and current inventory to schedule orders so that materials arrive just as they’re required for production.

The statement that best describes the difference is that capacity planning ensures sufficient resources to meet demand, while MRP ensures material availability and timing for production. The other ideas mix up responsibilities: capacity planning isn’t about material availability; MRP doesn’t directly ensure demand forecasting timing; and MRP isn’t about maximizing capacity utilization.