CPIM Practice Exam

What is a key benefit of mixed-model production?

1. Higher overall costs due to complexity

2. Increased demand for customization in products

3. Flexibility to meet varying sales demands effectively

4. Reduction in staffing requirements

The correct answer is: Flexibility to meet varying sales demands effectively

The key benefit of mixed-model production lies in its inherent flexibility, which allows manufacturers to effectively meet varying sales demands. In a mixed-model production environment, companies can produce multiple products on the same production line without significant disruptions. This adaptability is crucial for responding to fluctuations in market demand, allowing businesses to switch between different product types based on real-time customer needs. By utilizing mixed-model production, manufacturers can streamline their operations and improve their responsiveness to changing preferences. This flexibility helps reduce lead times and inventory levels, lowering the risk of overproduction and stockouts. In contrast, focusing solely on one product type could lead to inefficiencies and missed opportunities in markets that require diverse offerings. The other options do not accurately convey the primary advantages of mixed-model production. Increased demand for customization reflects market trends but does not encapsulate the broader flexibility of the production system itself. Higher overall costs and reduced staffing requirements are potential outcomes of mixed-model production but are not considered key benefits; instead, they could be seen as challenges that businesses must manage as they implement such systems.