Certified Supply Chain Professional (CSCP) Practice Exam

What is meant by system nervousness in an MRP context?

1. Stable and predictable order patterns

2. Frantic adjustments to MRP

3. Consistent production schedules

4. Effective inventory management

The correct answer is: Frantic adjustments to MRP

In an MRP (Material Requirements Planning) context, system nervousness refers to the frequent, often frantic adjustments made to the planning and production schedules due to changes in demand forecasts, lead times, or other variables. This scenario typically arises when there are fluctuations in inventory levels or when orders are changed or canceled frequently, leading to a chaotic and reactive approach in managing materials and production schedules. When system nervousness occurs, it can cause instability in the production process, negatively impacting efficiency and potentially leading to increased costs or delays. Effective management would ideally lead to more stable and predictable order patterns, consistent production schedules, and improved inventory management, yet system nervousness depicts a condition opposite to those desired outcomes. Therefore, the concept emphasizes the negative implications of poor communication and demand variability within the MRP system.