CPIM Practice Exam

Which of the following is a key function of the MRP system?

1. To maintain safety stock at all times

2. To calculate lead times for all orders

3. To effectively manage planned orders

4. To track inventory levels only

The correct answer is: To effectively manage planned orders

The choice highlighting the effective management of planned orders aligns well with a key function of the Material Requirements Planning (MRP) system. MRP is fundamentally designed to assist organizations in ensuring that the right materials are available at the right time to support production schedules. Planned orders are an essential part of this process, as MRP generates them based on the demand forecast, current inventory levels, and lead times for ordered materials. By effectively managing these planned orders, the MRP system helps to minimize stockouts and overstock situations, ultimately optimizing inventory management and supporting production efficiency. Other options, while they touch on relevant aspects of inventory management and ordering processes, do not directly encapsulate the primary purpose of an MRP system as effectively as managing planned orders does. Safety stock maintenance, lead time calculations, and inventory tracking are important but more broadly considered aspects that can be influenced by MRP, rather than being its central function.