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APICS Exam CPIM-Part-2 Topic 2 Question 21 Discussion

Actual exam question for APICS's CPIM-Part-2 exam
Question #: 21
Topic #: 2
[All CPIM-Part-2 Questions]

The trade-off of increasing safety stock to improve customer fill rate would be a decrease in:

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Suggested Answer: A

Measurements are quantitative or qualitative data that indicate the magnitude, frequency, or impact of the problem. Measurements help to define the problem clearly, objectively, and specifically, as well as to establish a baseline for improvement. Therefore, what should be added to the problem statement to make it more useful is measurements that help describe the problem. For example, a more useful problem statement could be ''We have observed that the inventory system causes 15% of plastic parts to be damaged or misplaced every month, resulting in $10,000 of additional costs and 5% of customer complaints.''


by Rebbecca at Jul 07, 2024, 02:50 AM

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Whitley
22 days ago
Wait, is the answer not 'all of the above'? Because that's what my gut is telling me!
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Chantay
24 days ago
Ooh, this is a tricky one. Maybe the decrease would be in sales revenue? More inventory might mean slower product turnover.
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Noah
9 days ago
B: I agree, having more safety stock would slow down inventory turnover.
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Cammy
20 days ago
A: I think the decrease would be in inventory turns.
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Annabelle
1 months ago
Hmm, I think the correct answer is C. Increasing safety stock means you have more inventory on hand, so your inventory turns would decrease.
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Mendy
Yes, it would improve customer fill rate, but at the expense of inventory turns.
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Kristeen
9 days ago
But wouldn't it also increase our customer fill rate?
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Yvette
13 days ago
I agree, increasing safety stock would definitely decrease inventory turns.
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Cordelia
2 months ago
If I increase safety stock, I bet my transportation costs would go down. Less frequent deliveries, you know?
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Leonora
9 days ago
That's right, increasing safety stock could lead to higher transportation costs due to less frequent deliveries.
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Anna
12 days ago
B) transportation costs.
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Hassie
13 days ago
If you increase safety stock, you might end up with more pipeline inventory.
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Colby
29 days ago
A) A pipeline inventory.
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Kenny
2 months ago
Increasing safety stock to improve customer fill rate would definitely mean a decrease in inventory turns. That's a no-brainer!
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Markus
2 months ago
Yes, but it's a trade-off we have to consider for customer satisfaction.
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Stephen
2 months ago
But wouldn't that lead to a decrease in inventory turns?
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Markus
2 months ago
I think increasing safety stock is important for customer fill rate.
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