Certified Supply Chain Professional (CSCP) Practice Exam

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Prepare for the Certified Supply Chain Professional Exam with a comprehensive quiz featuring multiple choice questions and essential study material. Gain the knowledge and confidence needed to excel in your certification journey!

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In manufacturing, how is 'utilization' calculated?

Days worked divided by total days available
Percentage of available time actually used
Actual output divided by potential output
Time spent in setup divided by run time

The correct answer is: Percentage of available time actually used

Utilization in manufacturing is a measure of how effectively available resources are being used. It is calculated by taking into account the percentage of available time that is actually used for production. This calculation reflects how much of the potential production capacity is being put to good use during a specific period. When considering this in practice, utilizing available time efficiently can directly impact overall productivity and efficiency. By measuring how many hours the machines or workstations are actively producing compared to total hours available for production, organizations can identify areas for improvement, reduce waste, and enhance operational performance. Calculating utilization as the percentage of available time actually used (the correct answer) highlights the importance of maximizing the use of resources to drive performance and profitability in manufacturing operations.