APICS Certified Supply Chain Professional (CSCP) — Question 206

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?

Answer options

• 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
• 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

Correct answer: C

Explanation

The correct answer is C because it takes the average of the demonstrated capacities over the last two periods, providing a balanced view of performance. While A and B focus solely on the most recent week, they may not account for variability, and D, though based on more data, does not reflect the most current capabilities.