CPIM Practice Exam

What solution is most likely to succeed when there is insufficient capacity for the priority plan based on actual customer orders?

1. Make a sales promotion for a later period

2. Add an evening shift for fully staffed equipment

3. Add more workers to already fully staffed equipment

4. Change the schedule to reduce demand

The correct answer is: Add an evening shift for fully staffed equipment

Adding an evening shift for fully staffed equipment is a proactive approach to addressing the insufficient capacity issue when demand arises from actual customer orders. This solution effectively expands the production capacity without the long turnaround time typically associated with hiring and training new employees or acquiring new equipment. By introducing an additional shift, the company can utilize its existing resources, such as machinery and trained staff, more efficiently. Since the equipment is already staffed, implementing an evening shift allows for continuous production, maximizing the output and addressing backlog due to demand from customer orders. This method also capitalizes on the existing workforce's skillsets without the complications of ramping up new employees or reallocating resources. On the other hand, options that involve sales promotions or changing schedules to reduce demand do not directly resolve the immediate capacity challenge presented by current customer orders. They might temporarily impact sales or shift timing, but they don't effectively meet the urgency of fulfilling existing orders. Adding more workers to already fully staffed equipment is also counterproductive, as it could lead to operational inefficiencies or increased labor costs without significantly increasing output.