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Updated: May 30, 2026
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1. Why is capacity requirements planning (CRP) important?
A) It coordinates availability of materials for production processes.
B) It provides the ability to compare available production capabilities to the planned workload.
C) It enables an assessment of employee production efficiency.
D) It creates a transparent view of lead time and overtime usage in work centers.
2. Which work system acknowledges the benefits of employee proficiency?
A) Lower operating cost
B) Labor specialization
C) Employee longevity
D) Enhanced employee relations
3. What are two reasons a company might be hesitant to provide overtime as a capacity-based option?
Choose 2 answers
A) Overtime decreases the labor cost per unit.
B) Overtime is not a long-term solution.
C) Overtime results in a buildup of excess inventory.
D) Overtime is typically a 50% wage premium.
4. Which two areas should managers consider in order to adapt to the business dynamics affecting their company?
Choose 2 answers
A) Their control over internal operations
B) Their influence and leverage over suppliers
C) Their influence over future legislation and regulations
D) Their advertising costs
5. Which function does marketing play in a just-in-time (JIT) organization?
A) JIT marketing focuses on producer-driven quality.
B) JIT marketing synchronizes product demand with assembly.
C) JIT marketing focuses on customer-driven quality.
D) JIT marketing simplifies inventory flow.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: B,D | Question # 4 Answer: A,B | Question # 5 Answer: C |
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