Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following represents one level of capacity management?

1. Supply Chain Strategy

2. Resource Plan

3. Demand Analysis

4. Inventory Control

The correct answer is: Resource Plan

Capacity management involves ensuring that a company has the right resources available to meet its production needs while minimizing waste and keeping costs under control. The resource plan is a crucial component in this context. It directly addresses the management of production capacity by detailing the resources necessary for production, including equipment, labor, and materials. By creating a resource plan, organizations can identify the capacity needed to meet expected demand, thus enabling efficient use of assets and avoiding bottlenecks. The other categories do play roles in broader operational strategies but do not specifically represent a level of capacity management. For example, supply chain strategy encompasses overall planning and the alignment of various elements within the supply chain but does not focus specifically on capacity. Demand analysis relates to understanding customer needs and forecasting sales, serving as a tool for planning but not explicitly managing capacity. Inventory control deals with managing stock levels of materials and products, which is essential for operations but not found specifically at the capacity management level. Thus, the resource plan stands out as the most direct representation of one level of capacity management.