APICS CPIM-Part-2 Dumps

A capacity-leading strategy is a proactive approach that adds or subtracts capacity in anticipation of future market demand. It is an aggressive strategy with the objective of improving the service level and decreasing lead time1. An advantage of adopting a capacity-leading strategy is that there issufficient capacity to meet demand, which means that the organization can satisfy customer needs and expectations, as well as capture new market opportunities. A capacity-leading strategy can also help the organization gain a competitive edge by being the first to offer new products or services, or by lowering prices due to economies of scale2.

The other options are not advantages of adopting a capacity-leading strategy. There is not necessarily sufficient demand to consume capacity, which means that the organization may face overcapacity problems, such as high inventory costs, low utilization rates, and reduced profitability3. All demand is not satisfied, and profit is not maximized, because there may be other factors that affect customer satisfaction and profitability, such as quality, price, or service4. Overcapacity problems are not minimized, but rather increased, by adopting a capacity-leading strategy, because the organization may have more capacity than needed if demand does not increase as expected3.

References: CPIM Part 2 Exam Content Manual, Domain 4: Plan and Manage Supply, Section 4.1: Supply Management Concepts and Tools, p. 33-34; Capacity Planning Strategies: Types, Examples, Pros And Cons - Toggl; Lead Capacity Strategy, Lead Demand Strategy - UniversalTeacher.com; Capacity Planning Strategies For End-to-End Supply Chain Profitability; Capacity Planning Strategies: Types, Examples, Pros And Cons - Toggl.

The horizon for forecasts that are input to the sales and operations planning (S&OP) process should be long enough that required resources can be properly planned. The S&OP process is a cross-functional process that aligns the demand and supply plans of an organization. The S&OP process consists of several steps, such as data gathering, demand planning, supply planning, pre-S&OP meeting, executive S&OP meeting, and S&OP implementation. The output of the S&OP process is the production plan, which is a statement of the resources needed to meet the aggregate demand plan over a medium-term horizon. The production plan can be stated in different units of measure depending on the type of manufacturing environment, such as hours, units, tons, or dollars. The horizon for forecasts that are input to the S&OP process should be long enough that required resources can be properly planned, meaning that the organization can anticipate and allocate the necessary capacity, materials, labor, equipment, and facilities to meet the expected demand. The horizon for forecasts should also match the lead time for acquiring or changing the resources, as well as the planning cycle for updating the production plan.

References: CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section 4.1: Develop Supply Plans, Subsection 4.1.2: Describe how to develop a production plan (page 36).

 The capacity requirements plan is used primarily to balance capacity and load at work centers. A work center is a location where one or more resources perform a specific operation or a group of operations. Capacity is the amount of time or output that a work center can offer for production activities. Load is the amount of time or output that a work center is required to produce based on the planned production schedule. Balancing capacity and load means matching the available capacity with the required load, so that there is no excess or shortage of capacity at any work center.

The capacity requirements plan is a report that shows the projected load and capacity of each work center over a planning horizon. It is derived from the master production schedule (MPS), which specifies the quantity and timing of finished goods to be produced, and the bill of materials (BOM), which specifies the components and materials needed for each finished good. The capacity requirements plan also uses the routing file, which specifies the sequence of operations and work centers required for each finished good, and the work center file, which specifies the capacity and availability of each work center. The capacity requirements plan can help to identify any gaps or surpluses in capacity at each work center and to take corrective actions, such as revising the MPS, rescheduling operations, adding or reducing resources, or outsourcing production.

The other options are not the primary uses of the capacity requirements plan. Calculating the level of available capacity is an input to the capacity requirements plan, not an output. The level of available capacity is determined by the work center file, which contains information such as shifts, hours, efficiency, utilization, and maintenance of each work center. Determining the overall product load profile is not a use of the capacity requirements plan, as it does not consider the product mix or demand variability. The overall product load profile is a general estimate of the total production volume or demand over a period of time. Determining the priority of orders is not a use of thecapacity requirements plan, as it does not consider the due dates or urgency of orders. The priority of orders is determined by using priority rules or dispatching methods, such as first-come-first-served (FCFS), shortest processing time (SPT), earliest due date (EDD), or critical ratio (CR).

References := Capacity Requirements Planning (CRP): Definition and Procedures, Capacity Requirements Planning (CRP Plan and Strategies) - ERP Information, Definition of Capacity Requirements Planning (CRP) - Gartner …