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MRP successfully demonstrated its effectiveness in reduction of stock; production and supply lead times by improving coordination and avoiding delays, thus making dedication more real looking. MRP proved to be an excellent technique for managing stock, however it didn’t take into consideration of different sources of an organization. Because of this shortcoming a modified MRP logic, popularly known as ‘closed loop MRP’ has been developed. A new module referred to as Capacity Requirement Planning (CRP) has been included on this. This module manages the capability of the organization to supply a particular product. A feedback loop is supplied from the CRP module to MPS if there may be not enough capacity available to provide.

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