Which of the following is the fundamental difference between finite loading and other capacity planning approaches?

Which of the following is the fundamental difference between finite loading and other capacity planning approaches?
A . It is highly dependent on advanced computer software to function effectively.
B . It is only managed by shop floor supervisors.
C . It can use historical information to drive decision-making processes.
D . It considers adjustments to plans based on planned capacity utilization.

View Answer

Answer: D

Explanation:

Finite loading is a capacity planning approach that considers adjustments to plans based on planned capacity utilization. It does not allow overloading of resources and schedules operations only when there is enough capacity available. Finite loading creates a more realistic schedule for the production processes than other approaches, such as infinite loading, that ignore the capacity constraints and assume that the due dates of orders are absolute. Finite loading is not highly dependent on advanced computer software, although it can benefit from it. It is not only managed by shop floor supervisors, but also by planners and schedulers. It can use historical information, but it is not the only approach that can do so. Therefore, the fundamental difference between finite loading and other capacity planning approaches is that it considers adjustments to plans based on planned capacity utilization.

Reference: = CPIM Part 2 Exam Content Manual, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section B: Schedule Production Activities, Subsection 1: Develop a detailed production schedule (p. 28)