CPIM Practice Exam

A facility or resource whose capacity is less than the demand placed upon it is called?

1. Constraint

2. Bottleneck

3. Split lot

4. Cycle time

The correct answer is: Bottleneck

A facility or resource whose capacity is less than the demand placed upon it is referred to as a bottleneck. In supply chain and capacity management, a bottleneck limits the overall capacity of the system. When demand exceeds what a particular resource can produce, it becomes a constraint on throughput, meaning that the entire operation is slowed down or hampered by this inadequacy. This can cause delays and inefficiencies in the entire supply chain process. Understanding the nature of bottlenecks is crucial for effective operations management, as improving or alleviating the constraints can lead to increased efficiency and productivity. By identifying and addressing the bottleneck, a company can enhance its output and better meet customer demand.