Which one of the following is not a step for determining production capacity requirements?Group of answer choicesCalculating labor needsProjecting availability of equipmentPredicting raw material availabilityForecasting product salesProjecting machine availability
Question
Which one of the following is not a step for determining production capacity requirements?Group of answer choicesCalculating labor needsProjecting availability of equipmentPredicting raw material availabilityForecasting product salesProjecting machine availability
Solution
Predicting raw material availability
Explanation:
While predicting raw material availability is an important aspect of supply chain management and production planning, it is not typically considered a step in determining production capacity requirements.
Production capacity requirements are generally determined by:
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Forecasting product sales: This involves predicting the demand for the product in the future.
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Calculating labor needs: This involves determining how
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