APICS Exam CSCP Topic 1 Question 70 Discussion

Actual exam question for APICS's CSCP exam

Question #: 70
Topic #: 1

[All CSCP Questions]

Which of the following factors is the key determinant of safety stock for finished goods?

AForecast variance

BMean absolute deviation (MAD)

CStandard deviation

DDesired service level

Show Suggested Answer

Suggested Answer: B

by Jamal at May 26, 2023, 11:18 AM

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Sheldon

5 days ago

D) Desired service level is the key, isn't it? You want to make sure you have enough inventory to meet customer demand, no matter what.

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Reita

6 days ago

But what about A) Forecast variance? Shouldn't that also play a role in determining safety stock?

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Aliza

7 days ago

I agree with Josue, because safety stock is directly related to meeting customer demand.

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Josue

8 days ago

I think the key determinant is D) Desired service level.

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Lourdes

10 days ago

But what about A) Forecast variance? Doesn't that also play a role in determining safety stock?

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Kristeen

12 days ago

I agree with Ria, because the desired service level directly impacts the safety stock.

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Kris

15 days ago

C) Standard deviation seems like the obvious choice here. I mean, the higher the variability in demand, the more safety stock you'll need to keep things running smoothly.

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Aracelis

3 days ago

A) Forecast variance plays a role too, you need to consider how accurate your forecasts are.

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Ria

20 days ago

I think the key determinant is D) Desired service level.

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