Which technique is often used to analyze production capacity?

The technique that is most commonly used to analyze production capacity is capacity requirements planning (CRP). CRP is specifically designed to assess the capacity needed to meet production schedules based on forecasted demand and current workload. By evaluating the available capacity against the planned production activities, CRP helps managers understand whether the existing resources—such as labor, machinery, and production space—are sufficient to meet the required output.

This analysis is crucial for effective planning and scheduling, as it allows businesses to identify potential capacity constraints early on, enabling proactive adjustments. CRP also assists in balancing workload across resources to avoid bottlenecks and ensuring that production schedules are realistic and achievable, contributing to overall operational efficiency.

In contrast, sales forecasting primarily focuses on predicting customer demand and does not directly analyze production capacity. Material requirements planning (MRP) deals with inventory and material needs based on production schedules rather than assessing capacity itself. Just-in-time (JIT) inventory is more focused on reducing inventory levels and improving efficiency through timely deliveries, but it does not analyze production capacity. Thus, CRP is the most appropriate technique for this purpose.