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:

In Process

Relating to materials or products that are in the course of being manufactured but are not yet completed.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units.

In Process

A term that describes items or activities that are currently underway but not yet completed, often used in manufacturing and project management.

Conversion Cost

Refers to the combination of labor and manufacturing overhead costs incurred to convert raw materials into finished goods.