Certified Production & Operations Manager (POM) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Production and Operations Manager Exam with our comprehensive quiz. Featuring flashcards and multiple-choice questions, each with helpful hints and explanations. Ace your test today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

If a nursery plans to grow 1,200 rosebushes with effective capacity of 2,000, what is the land’s utilization?

40%
60%
100%
67%

The correct answer is: 40%

To calculate land utilization, you can use the formula: Utilization = (Actual Output / Effective Capacity) × 100% In this case, the nursery plans to grow 1,200 rosebushes (actual output) with an effective capacity of 2,000 rosebushes. Plugging those values into the formula gives: Utilization = (1,200 / 2,000) × 100% = 60% Thus, the correct answer reflects the nursery's utilization of its effective capacity, indicating that 60% of the land's effective capacity is being used for growing the rosebushes. This concept is crucial for understanding how efficiently resources are being utilized in nursery operations, and it highlights the balance between what is planned versus what is technically possible.