APICS CPIM-Part-2 Exam - Topic 4 Question 50 Discussion

Actual exam question for APICS's CPIM-Part-2 exam

Question #: 50
Topic #: 4

Which of the following trade-offs should be evaluated when determining where to place inventory in a multi-echelon supply chain network?

AProduction cost and lot size quantity

DCustomer price and order quantity

BPurchase cost and shrinkage rates

CTransportation cost and delivery time

Show Suggested Answer

Suggested Answer: C

by Selma at Jan 25, 2026, 01:56 PM

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Ranee

5 days ago

I remember a practice question that focused on lead times and how they affect inventory placement. That seems relevant here.

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Garry

10 days ago

I think we need to consider the costs of holding inventory versus the service level, but I'm not entirely sure how to quantify that.

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Janessa

15 days ago

Alright, time to put my supply chain knowledge to the test. Gotta analyze the cost, customer service, and flexibility factors for each potential inventory location.

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Ryann

20 days ago

I've got a strategy - I'll start by listing out the key stakeholders and their priorities, then see how the inventory placement can balance those different needs.

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