The main function of capacity planning is to check the load at Work Center and do the capacity leveling i.e. balance the load at Work Center. It helps to calculate the production capacity based on the requirement of the product against the available capacity of the work center. MRP works with infinite capacity and creates planned orders at the Work Center at the same time since it assumes that Work Center is available all the time. So, it creates planned orders on the same date based on the requirements despite capacity shortages. You can execute those orders on that Work Center in the system which is not practically feasible in the shop floor. The main objective of the capacity leveling includes leveling overloads at Work Center and to achieve optimum utilization of Work Centers. MRP generated planned orders are converted to production orders which determine which Work Center is to be used, and accordingly the capacity requirements are generated on that Work Center. Capacity lev...