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A company finds that one of its warehouses is out of capacity to store products. Expanding the physical size of the warehouse is not an option. The most appropriate solution would be to increase the:
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Question 402 - CSCP discussion

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A work center's demonstrated capacity for the last week was 160 standard hours. Its demonstrated capacity for the last 6 weeks was 140 standard hours. Which of the following numbers would be best to use to determine the appropriate future load for the work center?

A.
160 standard hours, because it reflects what the work center has proven it can do.
Answers
A.
160 standard hours, because it reflects what the work center has proven it can do.
B.
160 standard hours, because it reflects what happened most recently.
Answers
B.
160 standard hours, because it reflects what happened most recently.
C.
150 standard hours, because it is the average of the last two periods.
Answers
C.
150 standard hours, because it is the average of the last two periods.
D.
140 standard hours, because it is based on a greater number of periods.
Answers
D.
140 standard hours, because it is based on a greater number of periods.
Suggested answer: D

Explanation:

To determine the appropriate future load for a work center, it is crucial to use data that best represents the work center's long-term performance. The demonstrated capacity over the last 6 weeks (140 standard hours) provides a more stable and reliable measure because it includes a greater number of periods, reducing the impact of any anomalies or variations that might have occurred in a single week. While the last week's capacity (160 standard hours) reflects recent performance, it may not be representative of the typical output. Averaging the capacities of two different periods (option C) is less accurate than relying on the larger dataset. Therefore, the best number to use is 140 standard hours, as it offers a more consistent and comprehensive view of the work center's capabilities.

Reference: APICS Dictionary; APICS CPIM Exam Content Manual.

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asked 16/09/2024
martin lopez
32 questions
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