Capacity Prerequisites Planning (CRP): Definition and Procedures

Capacity Prerequisites Planning (CRP): Definition and Procedures

What Is Capacity Requirements Planning (CRP)? Capacity requirements planning (CRP) is the process of discerning a firm’s available production capacity and whether it can meet its production goals. The CRP method first assesses the company’s planned manufacturing schedule. Then, capacity requirements planning weighs this schedule against the company’s actual production capabilities to see if the

Capital Allocation Definition

Capital Allocation Definition

What Is Capital Allocation? Capital allocation is about where and how a corporation’s chief executive officer (CEO) decides to spend the money that the company has earned. Capital allocation means distributing and investing a company’s financial resources in ways that will increase its efficiency, and maximize its profits. A firm’s management seeks to allocate its