Management Notes

Reference Notes for Management

If a load report (resource requirements profile) shows a work center scheduled beyond capacity:

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If a load report (resource requirements profile) shows a work center scheduled beyond capacity:

 Options:

A. the company must add capacity by enlarging the facility.
B. the company must add capacity by such tactics as overtime and subcontracting.
C. the work center’s load may be smoothed by such tactics as operations splitting or lot splitting.
D. the aggregate plan must be revised.
E. the Wagner-Whitin algorithm should be used to rebalance the load.

 

The Correct Answer Is:

  • C. the work center’s load may be smoothed by such tactics as operations splitting or lot splitting.

 

Conclusion

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