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APICS CPIM-Part-2 Exam - Topic 1 Question 3 Discussion

An advantage of adopting a capacity-leading strategy is that:
A) there is sufficient capacity to meet demand.
B) there is sufficient demand to consume capacity.
C) all demand is satisfied, and profit is maximized.
D) overcapacity problems are minimized.

APICS CPIM-Part-2 Exam - Topic 1 Question 3 Discussion

Actual exam question for APICS's CPIM-Part-2 exam
Question #: 3
Topic #: 1
[All CPIM-Part-2 Questions]

An advantage of adopting a capacity-leading strategy is that:

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Suggested Answer: A

A capacity-leading strategy is a proactive approach that adds or subtracts capacity in anticipation of future market demand.It is an aggressive strategy with the objective of improving the service level and decreasing lead time1. An advantage of adopting a capacity-leading strategy is that there is sufficient capacity to meet demand, which means that the organization can satisfy customer needs and expectations, as well as capture new market opportunities.A capacity-leading strategy can also help the organization gain a competitive edge by being the first to offer new products or services, or by lowering prices due to economies of scale2.

The other options are not advantages of adopting a capacity-leading strategy.There is not necessarily sufficient demand to consume capacity, which means that the organization may face overcapacity problems, such as high inventory costs, low utilization rates, and reduced profitability3.All demand is not satisfied, and profit is not maximized, because there may be other factors that affect customer satisfaction and profitability, such as quality, price, or service4.Overcapacity problems are not minimized, but rather increased, by adopting a capacity-leading strategy, because the organization may have more capacity than needed if demand does not increase as expected3.


by Deeanna at Nov 26, 2023, 05:40 PM

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Julieta
9 months ago
Wait, can we really satisfy all demand? That seems too good to be true!
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Peter
9 months ago
D is a good point, overcapacity can really hurt a business.
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Florinda
10 months ago
C sounds ideal, but is it really achievable?
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Lashawn
10 months ago
I think B makes more sense, demand drives capacity!
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Dalene
10 months ago
A is definitely true, you need enough capacity to meet demand.
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Nida
10 months ago
D seems plausible too, but I wonder if a capacity-leading strategy really minimizes overcapacity issues in practice.
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Eliz
10 months ago
I feel like C might be too optimistic. Just because demand is met doesn't mean profits are maximized, right?
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Judy
10 months ago
I'm not entirely sure, but I remember something about demand and capacity balance. Maybe B could be relevant?
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Mabel
11 months ago
I think option A makes sense because having enough capacity should help meet demand effectively.
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Corrinne
11 months ago
Wait, is the advantage that there is sufficient demand to consume the capacity? Or that profit is maximized? I'm a little confused on the nuances here.
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Virgie
11 months ago
Hmm, I'm a bit unsure about this one. I'll need to review my notes on capacity planning to make sure I understand the differences between the strategies.
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Mammie
11 months ago
This seems like a straightforward question about capacity management strategies. I'll need to think through the key advantages of a capacity-leading approach.
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Mona
11 months ago
Okay, I've got this. A capacity-leading strategy ensures you have enough capacity to meet demand, which is a key advantage. I'll select that option.
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Tayna
11 months ago
The logical schema is probably defined in one of the key components of the XQL query, like the bin or array expand. I'll have to think this through carefully.
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Marisha
11 months ago
Easy one - the data on SPC charts is always shown with the most recent data on the right, so the answer has to be true.
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Val
11 months ago
I feel like we've had practice questions about this before, and payments to healthcare providers definitely seem to fit as medical expenses.
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Domonique
11 months ago
Hmm, I'm a bit unsure about this one. I know there are different data subject rights, but I'm not totally sure which one applies in this scenario with the company sending customized newsletters.
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