CPIM Practice Exam

At what level of demand would the market become the constraint in a scenario where Operation 3 was previously the constraint?

1. 70 per hour

2. 95 per hour

3. 160 per hour

4. 230 per hour

The correct answer is: 70 per hour

The correct answer to this question involves understanding how the relationship between demand and capacity at different operational levels affects which operation becomes the constraint. In the context of this scenario, the key to identifying when the market becomes the constraint lies in recognizing the capacity limits of the preceding steps in the operations. When Operation 3 is the constraint, it is processing at its maximum capacity. As demand increases, if it reaches a level that exceeds the combined capacity of all operations upstream of Operation 3, then those operations may no longer pose a limitation, and the market's demand will start to dictate how much can be produced. In this case, the market will become a constraint when demand exceeds the capacity that Operation 3 can handle while also being limited by the capacities of upstream operations. The figure of 70 per hour indicates a threshold where all previous operations can support the processing rate without bottlenecks, thereby allowing the market demand to become the limiting factor. The other options represent levels of demand that either maintain Operation 3 as the constraint or exceed its capacity without considering the upstream limits, which would not signify the market as the new constraint effectively. Recognizing the interplay between operational capacity and market demand is essential to pinpointing the precise moment when market limits take precedence