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APICS Exam CSCP Topic 5 Question 87 Discussion

Actual exam question for APICS's CSCP exam
Question #: 87
Topic #: 5
[All CSCP Questions]

An item must be added to inventory to support new business. Which of the following inputs should be considered to determine minimum inventory level?

Show Suggested Answer Hide Answer
Suggested Answer: C

According to the APICS Supply Chain Operations Reference Model SCOR, an ineffective sales and operations planning (S&OP) process is most likely to impede the implementation of a demand management system. S&OP is a process that aligns the demand and supply plans across the supply chain, based on the business objectives and customer expectations. S&OP helps to balance demand and supply, improve forecast accuracy, reduce inventory costs, and increase customer satisfaction. An ineffective S&OP process can result in poor demand management, which can lead to stockouts, excess inventory, lost sales, or dissatisfied customers.


Contribute your Thoughts:

Pamella
30 days ago
I heard the minimum inventory level is always 'a lot'. Seems like a good rule of thumb to me!
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Denise
1 months ago
Why not just ask the inventory fairy to sprinkle some magic inventory dust and voila, problem solved!
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Rutha
1 months ago
Number of sales transactions? That's just tracking past performance. We need to look forward and anticipate future needs.
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Ramonita
11 days ago
C) ABC classification can help prioritize which items to keep at certain levels in inventory.
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Camellia
13 days ago
B) Qualified supplier is crucial to ensure timely replenishment of inventory.
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Kris
15 days ago
A) Consumption rate is important to determine minimum inventory level as it helps forecast future needs.
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Jill
1 months ago
ABC classification? Really? That's way too complex for a simple inventory decision. Keep it simple, folks!
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Joni
21 days ago
B) Qualified supplier
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Reynalda
1 months ago
A) Consumption rate
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Artie
2 months ago
I think qualified supplier is also a crucial input. You need to ensure you have a reliable source to replenish the inventory when needed.
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Truman
13 days ago
C) ABC classification can also help in determining the priority of items in inventory.
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Alonzo
1 months ago
B) Yes, having a qualified supplier is crucial for replenishing inventory.
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Thad
1 months ago
A) Consumption rate is important to determine minimum inventory level.
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Gail
2 months ago
Consumption rate is definitely the most important factor to consider when determining minimum inventory level. It directly reflects the demand for the item.
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Margret
16 days ago
D) Number of sales transactions can indicate popularity of the item.
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Paola
21 days ago
C) ABC classification helps prioritize inventory management.
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Alyce
30 days ago
B) Qualified supplier is also important to ensure timely replenishment.
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Francis
1 months ago
A) Consumption rate is crucial for determining minimum inventory level.
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Filiberto
2 months ago
I think ABC classification should also be considered. It helps in prioritizing which items are more important to have in inventory.
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Ming
2 months ago
I agree with Marci. Consumption rate is crucial to ensure we have enough inventory to support the new business.
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Marci
2 months ago
I think we should consider consumption rate for determining minimum inventory level.
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