CPIM Practice Exam

Which action could help resolve a situation where master production schedule priorities exceed capacity?

1. Increase advertising for that period

2. Make a sales promotion happen in a later period

3. Authorize short time

4. Take back work assigned to subcontractors

The correct answer is: Make a sales promotion happen in a later period

The correct choice suggests postponing a sales promotion to a later period as a viable solution to address the issue of master production schedule priorities exceeding capacity. By delaying the promotion, the demand for products during the initial period is reduced. This action can help alleviate pressure on the production capacity, allowing the organization to produce goods at a rate that is manageable and aligned with available resources. This strategy enables the production team to meet current demand without overwhelming the existing capacity, thus enhancing the balance between supply chain capabilities and market demands over time. Moreover, it allows for better planning of production schedules and resource allocation, ultimately striving to meet customer needs while maximizing operational efficiency. Adjusting advertising and promotional strategies is often an effective approach in supply chain management when there's a mismatch between supply capacity and expected demand.