Question 1

Why is capacity requirements planning (CRP) important?

Options :

A : It provides the ability to compare available production capabilities to the planned workload.

B : It enables an assessment of employee production efficiency.

C : It creates a transparent view of lead time and overtime usage in work centers.

D : It coordinates availability of materials for production processes.

Answer: A

Question 2

Which capacity planning measurement tells how much capacity a company is using?

Options :

A : Design capacity

B : Effective capacity

C : Capacity focus

D : Capacity utilization

Answer: D

Question 3

Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark?

Options :

A : Time a resource is used / time a resource is available

B : Actual output / standard output

C : Throughput time / value-added time

D : Output / input

Answer: B

Question 4

How does the status of overall customer satisfaction support supply chain objectives?

Options :

A : It measures space requirements.

B : It measures efficiency.

C : It measures compliance.

D : It measures capacity utilization.

Answer: B

Question 5

A company suddenly finds demand has increased to 140% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory. Which two options does the company have to rapidly meet the new demand? Choose 2 answers

Options :

A : Hire temporary workers

B : Build new production facilities

C : Subcontract a portion of production capacity

D : Hire and train new full-time employees

Answer: A,C

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