If a Load Report (Resource Requirements Profile) Shows a Work

question 122

Multiple Choice

If a load report (resource requirements profile) shows a work center scheduled beyond capacity:

• A) the company must add capacity by enlarging the facility.
• B) the company must add capacity by such tactics as overtime and subcontracting.
• C) the work center's load may be smoothed by such tactics as operations splitting or lot splitting.
• D) the aggregate plan must be revised.
• E) the Wagner-Whitin algorithm should be used to rebalance the load.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, apart from direct materials and direct labor costs.

Product Cost

The total cost associated with producing goods, including direct materials, direct labor, and manufacturing overhead.

Engine Oil

A lubricant used in internal combustion engines to reduce wear, protect against corrosion, and keep the engine clean.

Manufacturer

A company or person that makes goods for sale, especially on a large scale involving complex processes.