CPIM Practice Exam

Which of the following best describes an Open Order?

1. A completed manufacturing order

2. An unfilled customer order

3. A released manufacturing order or purchase order

4. Both B and C

The correct answer is: Both B and C

An Open Order is best described as either an unfilled customer order or a released manufacturing order or purchase order. This term refers to orders that have been initiated but not yet fulfilled. An unfilled customer order indicates that a customer has placed an order for a product, but the product has not yet been delivered. This means there is an outstanding demand that the company must fulfill. On the other hand, a released manufacturing order or purchase order signifies that the manufacturing or procurement process has begun, but the products have not yet been produced or received. This type of order is crucial for managing production schedules and inventory levels. By combining both definitions, Open Orders represent outstanding commitments in the supply chain that are still pending completion, making the choice that encompasses both definitions the most comprehensive and accurate description.