In rough-cut capacity planning, available hours are calculated by
A) Multiplying required capacity per unit by the quantity in the master production schedule
B) Multiplying the standard hours available by the hours actually used
C) Dividing actual output by expected output
D) Multiplying the actual hours available by the historical utilization and historical efficiency

Question

Quizplus · Accepted Answer

Rough-cut capacity planning involves estimating the overall capacity required to meet the production plan. This estimation includes considering the actual hours available for production and adjusting them based on historical utilization (how much of the available time is actually used for production) and historical efficiency (how effectively that time is used). Therefore, multiplying the actual hours available by the historical utilization and efficiency rates gives a realistic estimate of the available hours for production.

In Rough-Cut Capacity Planning, Available Hours Are Calculated by