A Plant Operating at Capacity Would Suggest That Most Likely

question 31

Multiple Choice

A plant operating at capacity would suggest that most likely:

• A)every machine and person in the plant is working at the maximum possible rate.
• B)managers should produce those products with the highest contribution margin in order to deal with the constrained resource.
• C)only some specific machines or processes are operating at the maximum rate possible.
• D)fixed costs will need to change to accommodate increased demand.

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Definitions:

Production Schedule

A detailed plan outlining the timing and sequence of production activities necessary to complete a manufacturing process.

MRP II

Stands for Manufacturing Resource Planning, an integrated method of operational and financial planning for manufacturing companies, improving overall production efficiency.

Forecasting

The practice of making predictions about future events or trends based on historical data and analysis, often used in planning and decision-making processes.

Replenishment Plans

Strategies or methods used to determine when and how much inventory should be restocked.