CPIM-Part-2 Exam Dumps : Certified in Planning and Inventory Management(Part 2)

Available capacity is the difference between the required capacity and planned operating capacity1. It refers to how capable the resources in an organization are in formulating and implementing strategy1. To calculate available capacity, factors such as the number of machines or workers, the number of shifts, utilization, and efficiency are considered1. Efficiency, in particular, is a crucial factor as it measures how effectively resources are used to produce output. It is calculated as the ratio of actual output to standard output within a specific time period1. Therefore, efficiency directly impacts available capacity by determining how much output can be produced with the available resources and time.

The other options, while important in production and operations management, are not directly used to calculate available capacity:

• Productivity measures the output per unit of input and is more about overall performance rather than available capacity.
• Load refers to the amount of work assigned to a resource or facility but does not directly indicate available capacity.
• Yield measures the percentage of products that meet quality standards out of total units produced but does not directly calculate available capacity.

References: Capacity planning - Wikipedia.

According to the web search results, the production plan is a long-term plan that establishes the quantity and timing of the end products to be produced by the company1. The production plan is based on the forecasted demand, the available capacity, and the company’s strategic objectives2. The production plan is also used to authorize and guide the master schedule, which is a more detailed and short-term plan that specifies the quantity and timing of each end product to be produced in each time period3. The master schedule is derived from the production plan, and it must not exceed the production plan’s limits. Therefore, the major contribution of the production plan is to provide authorization for the master schedule.

The other options are not correct, because they are either irrelevant or inaccurate. The production plan does not establish demand by end item, but rather responds to the forecasted demand by end item. The production plan does not identify key resources to support the master schedule, but rather determines the overall resource requirements to meet the production targets. The production plan does not establish the weekly build schedule, but rather provides the basis for the weekly build schedule, which is a more detailed breakdown of the master schedule that specifies how many units of each end product will be built in each week.

References:

• Production Planning - Definition, Objectives, Types, Importance
• Production Planning in Manufacturing: Best Practices for Production Plans
• Master Production Schedule (MPS) - Definition & Examples | Marketing Tutor
• [Master Production Schedule (MPS) - Meaning & Process | Tallyfy]
• [Production Planning - an overview | ScienceDirect Topics]
• [Production Planning: Definition, Levels, Objectives and Factors]
• [What Is a Weekly Build Schedule? | Bizfluent]

External sustainability reporting and verification is an opportunity for a company to communicate its performance in terms of environmental, social, and governance (ESG) aspects. ESG performance refers to how a company manages its impacts and risks on the natural environment, the society, and its own governance structure. By reporting and verifying its ESG performance, a company can demonstrate its commitment to sustainability, transparency, and accountability to its stakeholders, such as investors, customers, employees, regulators, and the public. External sustainability reporting and verification can also provide a company with various benefits, such as improved reputation, enhanced stakeholder trust, increased operational efficiency, reduced costs, and better decision making123.