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Certified in Production and Inventory Management Questions 221–225 (page: 46)

Updated On: 9-Feb-2026

Demonstrated capacity is:

  1. Minimum output
  2. Average Output
  3. Maximum output
  4. None of these

Answer(s): B



Over a 4-week period a work center produced 540 standard hours of work was available for 640 hours, and actually worked 480 hours. Calculate the utilization and the efficiency of the work center.

  1. 75%, 110%
  2. 75%, 112.9%
  3. 76%, 112.95%
  4. 75%, 110%

Answer(s): B



____________ is a two-step process. First determine the time needed for each order at each order at each work center. Then sum up the capacity required for individual orders.

  1. Load
  2. Capacity required
  3. Available capacity
  4. Both A and B are same

Answer(s): D



A work center is to process 150 units of gear shaft SG 123 on work order 333.the setup time is 1.5 hours, and the run time is 0.2 hours per piece. What is the standard time needed or run the order?

  1. 31.5 standard hours
  2. 30 standard hours
  3. 29.5 standard hours
  4. 28 standard hours

Answer(s): A



In the previous problem how much actual time will be needed to run the order if the work center has an efficiency of 120% and a utilization of 80%?

  1. 38 hours
  2. 38.2 hours
  3. 32.8 hours
  4. 32 hours

Answer(s): C



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