If a load report (resource requirements profile) shows a work center scheduled beyond capacity:
A) the company must add capacity by enlarging the facility.
B) the company must add capacity by such tactics as overtime and subcontracting.
C) the work center's load may be smoothed by such tactics as operations splitting or lot splitting.
D) the aggregate plan must be revised.
E) the Wagner-Whitin algorithm should be used to rebalance the load.

Question

Quizplus · Accepted Answer

If a work center is scheduled beyond capacity, smoothing the load by tactics like operations splitting or lot splitting can provide relief. Adding capacity or revising the aggregate plan may not be feasible or timely solutions. Overtime and subcontracting can add to the cost of production. The use of the Wagner-Whitin algorithm is for inventory control, not load balancing.

If a Load Report (Resource Requirements Profile) Shows a Work