Question: A firm has just run a capacity analysis using both the capacity bills technique and capacity requirements planning (CRP). Here are the results for component

A firm has just run a capacity analysis using
A firm has just run a capacity analysis using both the capacity bills technique and capacity requirements planning (CRP). Here are the results for component X123 for the next 12 weeks. Capacity requirement at workcenter 500 120 hours 115 hours Capacity bills CRP Which of the following explanations for the difference is the most likely? Capacity bills is considering options overplanning There is already some component X123 in on-hand inventory Setup times are handled differently by the two methods CRP keeps utilization steadier than capacity bills

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!