APICS Certified Supply Chain Professional (CSCP) — Question 80
A company that has selected the hybrid production method has multiple alternatives for the timing of activating and deactivating capacity. The inventory carrying costs and which of the following categories of costs would typically be relevant in the analysis of the alternatives?
Answer options
- A. Strategic sourcing
- B. Capital tooling
- C. New employee training
- D. Fixed plant
Correct answer: B
Explanation
The correct answer is B, as capital tooling costs are directly related to the production capacity and its adjustments. The other options, such as strategic sourcing, new employee training, and fixed plant costs, do not directly impact the timing of production capacity adjustments in the same way.