CPIM Practice Exam

Which is an objective of material requirements planning?

1. Keep the factory busy.

2. Keep priorities current.

3. Determine the forecast.

4. Minimize inventory investment.

The correct answer is: Keep priorities current.

Keeping priorities current is an important objective of material requirements planning (MRP). MRP focuses on ensuring that materials are available for production and that products are available for delivery to customers while maintaining the lowest possible level of inventory. By keeping priorities current, MRP helps organizations respond dynamically to changes in demand, supply chain disruptions, and production requirements. This adaptability is crucial for effective production scheduling and resource allocation, allowing the organization to align its operations with real-time data and priorities. Material requirements planning seeks to optimize the flow of materials through the manufacturing process while adapting to changes in production necessity and market demand. Current priorities allow for timely adjustments to production schedules and inventory levels, supporting efficient operations and enhanced customer satisfaction. The other options, while relevant to production and inventory management, do not capture the essence of what material requirements planning aims to achieve as directly as keeping priorities current does. For example, keeping the factory busy is more about maximizing production output rather than aligning it with actual demand and resource availability. Similarly, determining the forecast is essential for planning but is typically handled by different functions within an organization rather than being a direct objective of MRP itself. Minimizing inventory investment is a goal of MRP, but it is pursued as part of the broader objective of