CPIM Practice Exam

What is a key advantage of back scheduling?

1. Avoids inventory buildup and cost.

2. Commits resources as early as possible.

3. Takes advantage of excess capacity.

4. Levels the workload.

The correct answer is: Avoids inventory buildup and cost.

Back scheduling focuses on planning production activities by starting with the deadline and scheduling backwards to ensure that all required tasks are completed in time for the final delivery. The key advantage of this approach is that it helps avoid inventory buildup and associated costs. By ensuring that production starts later rather than earlier, back scheduling reduces the amount of work-in-progress and finished goods stored in inventory. This is particularly important because excess inventory can lead to increased holding costs, risk of obsolescence, and cash flow issues. Additionally, back scheduling emphasizes working only on what is necessary to meet demand, which directly prevents overproduction—a common cause of inventory issues. It aligns production closely with actual demand, thus maintaining a leaner operation. This operational efficiency is vital in today’s fast-paced environment, where responsiveness and cost management are crucial for maintaining competitiveness.