APICS Updated CPIM-8.0 Exam Questions and Answers by orin

Rough-cut capacity planning (RCCP) is a technique that evaluates the feasibility of a master production schedule (MPS) by comparing the available capacity of key resources with the required capacity of the MPS. In a job shop environment, where products are made to order and have high variety and low volume, RCCP would typically review only the critical work centers to determine the ability to execute the plan. Critical work centers are those that have the greatest impact on the throughput, lead time, or cost of the products. They are usually the work centers that have the highest utilization, longest setup times, or most frequent bottlenecks. By focusing on the critical work centers, RCCP can simplify the capacity planning process and identify the potential problems or constraints that may affect the MPS. The other options, gateway work centers, final assembly work centers, and all work centers, are not as effective as critical work centers for RCCP in a job shop environment, as they may not reflect the true capacity requirements or constraints of the products. References:

Rough Cut Capacity Planning (RCCP) - Definition, Example, and Benefits

Rough Cut Capacity Planning (RCCP) - Meaning, Objectives, and Advantages

Rough Cut Capacity Planning (RCCP) - Overview, Steps, and Example

The probability of stocking out is the likelihood that the demand for an item will exceed the available inventory during a given period. It is one of the criteria used to determine safety stock in a distribution center (DC), as safety stock is inventory that is carried to protect against forecast errors and fluctuations in demand or supply. The higher the probability of stocking out, the more safety stock is needed to avoid customer dissatisfaction and lost sales. The other criteria are not directly related to safety stock. Economic order quantity (EOQ) is the order quantity that minimizes the total inventory holding and ordering costs. Seasonal index value is a measure of how demand varies according to different seasons or periods. Alpha factor level is a parameter used in exponential smoothing to adjust the forecast based on the error between the actual and forecasted demand. References: Safety Stock: A Contingency Plan to Keep Supply Chains Flying High, APICS CPIM 8 Planning and Inventory Management | ASCM