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CIPS Exam L4M7 Topic 6 Question 20 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 20
Topic #: 6

[All L4M7 Questions]

The size of order that minimises the total cost of acquiring and holding stock is known as...

AOrder quantity

BEconomic Order Quantity

CThe correct quantity

DAverage stock

Show Suggested Answer

Suggested Answer: C

For single items, an extra investment in inventory (higher levels of safety stock) will always in-crease customer service levels. Conversely, higher service levels imply larger quantities of safety stocks and an increased investment in inventory. (Procurement and Supply Chain Management - 9th Edition)

LO 2, AC 2.2

by Van at Aug 04, 2023, 02:39 PM

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Marvel

4 days ago

Wait, is there a trick question here? What if the answer is actually the amount that maximizes my snack budget?

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Delmy

8 days ago

Haha, I almost went with D) Average stock. Sounds like something my professor would trick us with!

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Bernadine

13 days ago

Hmm, I was stuck between B) and D) Average stock. Glad I double-checked the definitions!

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Karima

17 days ago

I thought it was C) The correct quantity, but I guess B) is the more formal term.

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Kenny

17 days ago

I'm not sure, but I think it's A) Order quantity.

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Nettie

18 days ago

B) Economic Order Quantity, of course! That's the textbook answer.

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Raelene

21 days ago

I agree with Veda, because EOQ helps in minimizing total cost.

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Veda

23 days ago

I think the answer is B) Economic Order Quantity.

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az-700 pass4success az-104 200-301 200-201 cissp 350-401 350-201 350-501 350-601 350-801 350-901 az-720 az-305 pl-300

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