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In the context of capacity requirements planning, what does “setup” refer to?

  1. The adjustment of employee schedules

  2. The preparation of machines for production runs

  3. The organization of raw materials

  4. The configuration of production goals

The correct answer is: The preparation of machines for production runs

In capacity requirements planning, "setup" refers specifically to the preparation of machines for production runs. This involves adjusting and configuring equipment to operate efficiently for the specific tasks it needs to perform during the production process. Setup can include changing tooling, cleaning the machinery, or adjusting machine settings to accommodate the specifications of the product being manufactured. This is a critical aspect of manufacturing as it directly affects the overall efficiency, lead time, and quality of production. Reducing setup time can lead to more flexibility in production schedules and help in managing capacity more effectively by minimizing downtime between different production runs. The other choices, while related to aspects of planning and operations, do not capture the essential function of setup in the same way that the preparation of machines does.