CPIM Practice Exam

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In the MRP system, if there is an order release for 50 units of part A in week 2, what will be the action in week 1?

No action necessary
Receive planned order for 50 As
Release planned order for 50 As
Cancel the order

The correct answer is: Release planned order for 50 As

The correct action in week 1, when there is an order release for 50 units of part A in week 2, is to release a planned order for those 50 units in order to ensure that they are available when needed. In an MRP (Material Requirements Planning) system, planned orders need to be created in advance of actual production or order releases to provide sufficient lead time for acquiring the necessary materials. Releasing the planned order in week 1 ensures that the production or procurement process can start, allowing enough time to fulfill the requirement by week 2. This preemptive action is crucial for maintaining a smooth flow of operations and meeting customer demands without delays. Other actions, such as receiving, canceling, or taking no action, would not effectively address the timing needs associated with the planned order release and would potentially lead to disruptions in the production schedule. Therefore, the proactive step of releasing planned orders is essential in this context.