The correct answer is C - Capacity requirement planning.

C: Capacity Requirements Planning (CRP) is a planning function that ensures that the production plan developed by material requirements planning (MRP) is feasible given the available capacity of work centers or resources. CRP takes the output of MRP, which includes the timing and quantity of materials required for production, and matches it with the capacity of work centers to determine if the production plan can be executed as planned. CRP helps identify potential capacity constraints and allows for adjustments to the production schedule to optimize resource utilization and meet production requirements.

CRP takes the information from the MRP system, which includes details about what materials are required and when, and uses it to assess the capacity needs of the manufacturing operation.

Capacity requirements planning (CRP) determines in detail the amount of labor and machinery required to carry out production tasks specified in the material requirements plan (MRP), translating MRP orders (measured in units) into hours of work for each work center in each time period. CRP is the most detailed level of capacity planning. C is the correct answer.

A looks better