Claudio uses a Re-Order Point (ROP) system for stock replenishment. What is one disadvantage compared with an MRP system?
Comprehensive and Detailed Explanation From Exact Extract:
ROP systems trigger replenishment when inventory hits a set minimum. They are reactive and do not account for forecasted changes in demand (e.g., seasonality). MRP, by contrast, is proactive---factoring in future demand forecasts and production schedules.
(Reference: CIPS L5M10 Study Guide, Re-Order Point systems and limitations, pp. 170--171)
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