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Claudio uses a Re-Order Point (ROP) system for stock replenishment. What is one disadvantage compared with an MRP system?
Suggested Answer: D
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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)
31 comments · newest first
RI
Ria
7 months ago
I feel like D is also relevant. No forecasts means less accuracy.
CH
Chauncey
7 months ago
True, but C feels more critical for efficiency.
MA
Malinda
7 months ago
But isn't option A also a problem? Suppliers can't see stock levels.
LO
Lorenza
7 months ago
Agreed! ROP takes longer to raise orders compared to MRP.
MA
Maricela
7 months ago
I think option C is a big issue. Manual processes slow everything down.
EL
Elvis
7 months ago
Wait, are we sure about B? That sounds off.
ST
Stephanie
8 months ago
D makes sense, forecasts are key for planning.
EL
Elza
8 months ago
I thought ROP could handle independent demand items?
IV
Ivette
8 months ago
Seriously, who uses a Re-Order Point system these days? MRP is the way to go, hands down.
AL
Alysa
9 months ago
Haha, I bet Claudio is still using a rotary phone to place those orders!
AS
Ashlyn
9 months ago
A) Suppliers are unable to view current stock levels. That could lead to supply chain issues.
YU
Yuki
9 months ago
D) It does not work with forecasts. That's a big problem in an unpredictable market.
VI
Vincenza
9 months ago
B) It cannot be used with independent demand items. That's a significant limitation for many businesses.
RA
Raul
9 months ago
C) It is a manual system that takes longer to raise orders. That's a major drawback in today's fast-paced world.
LI
Lizbeth
9 months 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.
FR
Francoise
10 months ago
I feel like we had a practice question about this, and I think it mentioned that ROP might struggle with independent demand items.
DE
Dexter
10 months 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.
OL
Oliva
10 months ago
I remember discussing how ROP systems are more straightforward, but I think they might lack the forecasting capabilities that MRP systems have.
MA
Maybelle
10 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.
NU
Nu
10 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.
AL
Alex
10 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.
LI
Lillian
11 months ago
C is definitely a downside, it slows things down.
DI
Dierdre
11 months ago
I lean towards B. ROP isn't great for independent demand items.
JE
Jerrod
11 months ago
A is a big issue too, suppliers need that info!
LA
Laurel
11 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.
BE
Ben
12 months ago
I'm not too familiar with the differences between ROP and MRP systems, so I'll need to think this through carefully.
LA
Lashawnda
6 months ago
So, is it mainly about speed then?
DE
Denise
6 months ago
True, ROP doesn't work well with forecasts.
VI
Viva
6 months ago
But isn't MRP better for forecasts?
VI
Vivienne
6 months ago
Yeah, it takes longer to raise orders.
LY
Lyda
11 months ago
I think ROP is more manual, right?