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What is the purpose of rough-cut capacity planning (RCCP)?

  1. To calculate total inventory costs

  2. To convert the master production schedule into resource requirements

  3. To forecast future sales

  4. To analyze supplier performance

The correct answer is: To convert the master production schedule into resource requirements

Rough-cut capacity planning (RCCP) serves the specific purpose of converting the master production schedule into resource requirements. This process helps organizations assess the capacity needed to meet demand indicated by the master production schedule without delving into detailed capacity planning. It provides a high-level evaluation of whether current resources, such as labor, machinery, and materials, are adequate to support the production plans. The focus of RCCP is on identifying potential capacity constraints early in the planning process. By comparing the resources required against available capacity, businesses can make informed decisions about adjustments needed to meet production goals. This proactive approach enables organizations to address capacity issues before they impact production timelines and overall effectiveness. Other options do not align with the primary function of RCCP. Calculating total inventory costs involves a different analytical approach focused on inventory management, while forecasting future sales pertains to demand planning rather than capacity assessment. Analyzing supplier performance is related to procurement and supply chain management but does not involve the capacity planning directly addressed by RCCP.