The Capacity Requirements Planning (CRP) Process That Uses the Information

question 26

True/False

The capacity requirements planning (CRP) process that uses the information from the master production schedule and the time-phased order requirements schedule to develop detailed machine and labor use schedule based on available capacity.

---

Definitions:

Trade-off

A case where the gain of one property or aspect comes at the cost of losing another.

Budget Constraints

Refers to the limitations on the consumption choices of individuals or entities due to their available resources, such as income or wealth.

Indifference Curves

Graphical representations showing combinations of two goods that give the consumer equal satisfaction and utility.

Optimum

The most favorable condition or level of something, where benefits are maximized and negative effects are minimized.