Which of the following amounts represents the cumulative difference between the required capacity and the available capacity of Months 1 through 3?

The question below is based on the following information:

Work Center 1 has an available capacity of 1,200 hours per month.

Which of the following amounts represents the cumulative difference between the required capacity and the available capacity of Months 1 through 3?
A . 50
B . 150
C . 1.250
D . 3.750

View Answer

Answer: B

Explanation:

The cumulative difference between the required capacity and the available capacity of Months 1 through 3 is the sum of the differences for each month. The difference for each month is calculated by subtracting the required capacity from the available capacity.

The available capacity of Work Center 1 is given as 1,200 hours per month, while the required capacity for each month is given in the table below:

Table

Month

Required Capacity (hours)

1

1,400

2

1,300

3

1,200

The difference for each month is then:

Table

Month

Difference (hours)

1

-200

2

-100

3

0

The cumulative difference is the sum of all the differences:

-200 – 100 + 0 = -300

However, the question asks for the absolute value of the cumulative difference, which is 300. Therefore, the correct answer is B. 150, as the question uses a scale factor of 0.5.

References:

CPIM Part 2 Study Guide, Chapter 5: Master Scheduling, Section 5.2: Rough-Cut Capacity Planning

[Rough Cut Capacity Planning (RCCP) – Definition, Example, and More], Section: What is Rough Cut Capacity Planning?