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CIPS L5M10 Exam - Topic 2 Question 5 Discussion

Actual exam question for CIPS's L5M10 exam
Question #: 5
Topic #: 2
[All L5M10 Questions]

Claudio uses a Re-Order Point (ROP) system for stock replenishment. What is one disadvantage compared with an MRP system?

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Suggested Answer: D

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)


Contribute your Thoughts:

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Ivette
15 hours ago
Seriously, who uses a Re-Order Point system these days? MRP is the way to go, hands down.
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Alysa
6 days ago
Haha, I bet Claudio is still using a rotary phone to place those orders!
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Ashlyn
11 days ago
A) Suppliers are unable to view current stock levels. That could lead to supply chain issues.
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Yuki
16 days ago
D) It does not work with forecasts. That's a big problem in an unpredictable market.
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Vincenza
21 days ago
B) It cannot be used with independent demand items. That's a significant limitation for many businesses.
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Raul
26 days ago
C) It is a manual system that takes longer to raise orders. That's a major drawback in today's fast-paced world.
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Lizbeth
1 month ago
I’m leaning towards option D since ROP seems to focus more on current stock levels rather than forecasts, but I could be wrong.
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Francoise
1 month ago
I feel like we had a practice question about this, and I think it mentioned that ROP might struggle with independent demand items.
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Dexter
1 month ago
I’m not entirely sure, but I think one disadvantage could be that ROP is more manual and might take longer to process orders compared to MRP.
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Oliva
2 months ago
I remember discussing how ROP systems are more straightforward, but I think they might lack the forecasting capabilities that MRP systems have.
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Maybelle
2 months ago
I remember learning that a ROP system is best for independent demand items, not dependent demand. So option B seems like the right answer here.
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Nu
2 months ago
Wait, I'm a bit confused. Isn't a ROP system manual while MRP is automated? I'll have to double-check that detail before the exam.
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Alex
2 months ago
Okay, I've got this. The disadvantage is that a ROP system doesn't work with forecasts, unlike an MRP system. I'm confident I can explain that in the exam.
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Lillian
2 months ago
C is definitely a downside, it slows things down.
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Dierdre
3 months ago
I lean towards B. ROP isn't great for independent demand items.
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Jerrod
3 months ago
A is a big issue too, suppliers need that info!
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Laurel
3 months ago
Hmm, I think the key here is understanding the limitations of a ROP system compared to MRP. I'll need to review my notes on the pros and cons of each approach.
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Ben
3 months ago
I'm not too familiar with the differences between ROP and MRP systems, so I'll need to think this through carefully.
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Lyda
2 months ago
I think ROP is more manual, right?
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