Exam L6M9 Topic 2 Question 40 Discussion
Actual exam question for CIPS's L6M9 exam
Question #: 40
Topic #: 2
Question #: 40
Topic #: 2
Jed is theOperations Managerat acake manufacturerand is trying to determine theoptimumcapacityof the factory.
Which of the following would be true if the factoryachieves optimum capacity? SelectALLthat apply.
Which of the following would be true if the factoryachieves optimum capacity? SelectALLthat apply.
Suggested Answer: B,C Vote an answer
Optimum capacityis achieved when:
* Customer demand is met (B)
* Production costs are minimized (C)
#Incorrect options:
* (A)is false because optimum capacityisn't necessarily the physical limit
* (D)is false because the factory should beoperating at a profit, not breakeven
* (E)is false because the lowest cost per unit is achieved, not the highest
* (F)is false becauseinventory levels should be minimized, not maximized (to reduce storage costs) (See LO 1.3, p.46)
* Customer demand is met (B)
* Production costs are minimized (C)
#Incorrect options:
* (A)is false because optimum capacityisn't necessarily the physical limit
* (D)is false because the factory should beoperating at a profit, not breakeven
* (E)is false because the lowest cost per unit is achieved, not the highest
* (F)is false becauseinventory levels should be minimized, not maximized (to reduce storage costs) (See LO 1.3, p.46)
by Drew at Jul 14, 2026, 08:58 AM
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