CPIM Practice Exam

The concept of protective capacity is designed to?

1. Guarantee excessive output at all times

2. Protect system throughput and accommodate disruptions

3. Eliminate all forms of inventory

4. Increase overhead costs

The correct answer is: Protect system throughput and accommodate disruptions

The concept of protective capacity is indeed designed to protect system throughput and accommodate disruptions. This idea stems from the need to ensure that production capacity can handle unexpected changes or interruptions, such as machine breakdowns, supply chain issues, or sudden increases in demand. By having a buffer or protective capacity, a system can operate more smoothly, maintaining consistent output levels and reducing the risk of bottlenecks. Maintaining protective capacity allows organizations to be agile and responsive in the face of unforeseen challenges, ensuring that they can continue to meet customer needs and deliver products on time. This approach enhances overall efficiency and reliability in operations, which is vital for competitive advantage. The other options provide alternatives that do not align with the strategic purpose of protective capacity. For instance, guaranteeing excessive output at all times may lead to waste and inefficiencies. Eliminating all forms of inventory is not practical or beneficial, as it can result in stockouts and inability to meet demand. Likewise, increasing overhead costs runs counter to the goals of efficient operations and effective cost management.