CPIM Practice Exam

What effect does back scheduling have on resource commitment?

1. It commits resources as soon as possible.

2. It avoids inventory costs.

3. It increases the flexibility of scheduling.

4. It reduces idle time in production.

The correct answer is: It avoids inventory costs.

Back scheduling, or backward scheduling, involves planning production by starting from the due date and working backwards to determine the necessary steps to complete the task on time. This method has a direct influence on resource commitment. The correct answer relates to how back scheduling can help avoid inventory costs. By starting from the due date, companies can effectively minimize the amount of work in progress (WIP) and finished goods that might sit in inventory, thus reducing holding costs. Since resources are committed closer to the actual time of need, there's less likelihood of producing excess items that would require storage, which can incur costs and risks associated with obsolescence or damage. Additionally, this scheduling approach ensures that resources are utilized just in time for production, ultimately aligning resource commitments more closely with demand. The other options pertain to different aspects of scheduling. While back scheduling can help reduce idle time and may increase scheduling flexibility by adjusting resources dynamically, its primary focus is on managing inventory levels effectively. Therefore, avoiding inventory costs is a central advantage of back scheduling in the context of resource commitment.