Certified Supply Chain Professional (CSCP) Practice Exam

Which action can be taken to adjust the load to match capacity?

1. Hire additional staff

2. Change lot size (order quantity)

3. Increase work shifts

4. Purchase new machinery

The correct answer is: Change lot size (order quantity)

Adjusting the load to match capacity is a critical component of supply chain management that aims to ensure that the production processes are optimized while maintaining efficiency and meeting demand. Changing the lot size, or order quantity, directly impacts how many items are produced or processed in a single production run. By adjusting the lot size, organizations can align production schedules with the existing capacity of their resources. For example, if demand increases but the current production capacity remains constant, producing larger lot sizes may help meet demand without requiring additional investments in resources. Conversely, if demand decreases, reducing the lot size can prevent overproduction and inefficiencies. This approach is often more flexible and cost-effective compared to the other options, such as hiring new staff, which can take time and incur additional costs, increasing work shifts, which might lead to employee fatigue and reduce overall productivity, or purchasing new machinery, which is significant and typically involves lengthy lead times and capital investment. By modifying lot sizes, organizations can quickly adapt to fluctuations in demand relative to their current capacity constraints.