A Work Center's Demonstrated Capacity for the Last Week Was

question 280

Multiple Choice

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?

• 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

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