Which term refers to a plan that is frozen and cannot be changed automatically by the computer in an MRP system?

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Study for the APICS CPIM Exam 1. Prepare with expertly crafted flashcards, multiple-choice questions, and detailed explanations. Gear up for success!

Multiple Choice

Which term refers to a plan that is frozen and cannot be changed automatically by the computer in an MRP system?

Explanation:
In MRP, a plan can be protected from automatic changes by designating it as firm. A firm planned order is a planned order that has been made firm, so the MRP system will not automatically reschedule or cancel it in response to shifting demand, supply, or capacity. This preserves the schedule and quantity for commitments that are already agreed upon, and it may later be released to become a production or purchase order. Floating planned orders, by contrast, can still be moved or canceled by MRP as the plan evolves. The terms locked plan or frozen order aren’t standard CPIM terminology for this concept.

In MRP, a plan can be protected from automatic changes by designating it as firm. A firm planned order is a planned order that has been made firm, so the MRP system will not automatically reschedule or cancel it in response to shifting demand, supply, or capacity. This preserves the schedule and quantity for commitments that are already agreed upon, and it may later be released to become a production or purchase order. Floating planned orders, by contrast, can still be moved or canceled by MRP as the plan evolves. The terms locked plan or frozen order aren’t standard CPIM terminology for this concept.

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