Certified Supply Chain Professional (CSCP) Practice Exam

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Which of the following is included in the four levels of capacity management?

  1. Capacity Implementation Plan

  2. Capacity Requirements Plan

  3. Capacity Forecasting Plan

  4. Run Rate Analysis

The correct answer is: Capacity Requirements Plan

The four levels of capacity management are essential for ensuring that an organization can meet its production and service delivery requirements effectively. The Capacity Requirements Plan specifically focuses on determining the amount of capacity required to meet forecasted demand. This involves analyzing the expected workload, managing resources effectively, and aligning capacity with production schedules to ensure that demands can be met without significant delays or excess costs. This plan helps organizations avoid underutilization of resources or bottlenecks in production, which can lead to inefficiencies. By forecasting future capacity needs based on demand projections, businesses can ensure they maintain the right balance between supply and demand. While other plans, such as a Capacity Implementation Plan and a Capacity Forecasting Plan, are related to managing capacity, they do not directly address the specific requirements needed to align capacity with demand. Run Rate Analysis, on the other hand, is more about evaluating current performance and predicting future outputs based on that data, rather than planning for future capacity needs.