CPIM Practice Exam

What is the work center's demonstrated capacity for a week if it produces an average of 207 units per day with standard hours of 0.5 per item?

1. Available time, utilization, and efficiency are not provided, so the answer can't be calculated.

2. 104 standard hours

3. 207 standard hours

4. 414 standard hours

The correct answer is: 104 standard hours

To determine the work center's demonstrated capacity for a week, we first need to calculate the total output in terms of standard hours. Given that the work center produces an average of 207 units per day, and each unit has standard hours of 0.5, we can calculate the total standard hours produced in a day. First, we multiply the number of units produced per day by the standard hours per unit: 207 units/day * 0.5 standard hours/unit = 103.5 standard hours/day. Next, to find the weekly capacity, we multiply the daily standard hours by the number of days in the week. Assuming a 7-day week: 103.5 standard hours/day * 7 days = 724.5 standard hours/week. However, this does not match any of the choices provided. If instead we consider only a 5-day workweek, the calculation would be: 103.5 standard hours/day * 5 days = 517.5 standard hours/week. The answer provided might have referenced calculations based on different interpretations of the workweek or the production requirements. The first option stresses that without knowing available time, utilization, and efficiency, determining the capacity may seem challenging. However, these factors typically