CPIM Practice Exam

What does gross requirements come from in the time-phased order point system?

1. Forecasts

2. Actual sales data

3. Safety stock levels

4. Inventory audits

The correct answer is: Forecasts

Gross requirements in a time-phased order point system primarily stem from forecasts. This approach relies on predicting future demand for products based on historical data, market trends, and customer behavior. Forecasts help organizations anticipate the quantities of materials or products they will need over a specific period, thus informing their ordering and inventory management strategies. While actual sales data, safety stock levels, and inventory audits play significant roles in inventory management, they are not the primary source for gross requirements. Actual sales data provides insight into past performance, safety stock levels ensure that a buffer is maintained for unexpected demand fluctuations, and inventory audits help assess the accuracy of inventory records. However, it is the forecasts that establish the baseline of gross requirements needed to meet projected demand.