CPIM Practice Exam

Which element is NOT considered in Rough-Cut Capacity Planning (RCCP)?

1. Labor

2. Machinery

3. Inventory levels

4. Warehouse space

The correct answer is: Inventory levels

Rough-Cut Capacity Planning (RCCP) is a process used to evaluate the feasibility of a production plan by assessing whether sufficient capacity is available to meet the expected demand. In this context, labor and machinery represent the critical resources required to execute production schedules effectively. These elements directly impact production capabilities and are essential to determining if the necessary output can be achieved. Warehouse space, while important for overall logistics and inventory management, is not a direct factor in assessing production capacity. RCCP focuses on the constraints available within the production environment, such as labor and machinery, to ensure that the production goals can be met without considering the storage facilities or inventory levels. By contrast, inventory levels are examined in terms of their relevance to capacity planning, ensuring that sufficient materials are available to meet production needs. Therefore, inventory levels can influence how capacity is planned and aligned with demand. In summary, inventory levels, labor, and machinery are all integral to the RCCP process, as they directly impact production capabilities, while warehouse space is not included in this specific planning focus.