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

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

Question #: 50
Topic #: 4

[All CPIM-Part-2 Questions]

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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Ayesha

2 days ago

Don't forget about service level impacts. They can make or break customer satisfaction.

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Antonio

7 days ago

Agreed! Inventory holding costs are also crucial.

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Kris

12 days ago

I think we should consider transportation costs first.

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Eleonora

2 months ago

Surprised no one mentioned demand variability!

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Christiane

2 months ago

Really? I thought location was the only factor.

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Mauricio

2 months ago

Don't forget about lead times, they matter too!

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Malcolm

2 months ago

Totally agree, balancing those is crucial!

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Amalia

3 months ago

Inventory costs vs. service levels is key.

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Gwenn

3 months ago

I bet the answer involves a magic formula that makes inventory fairies appear out of thin air.

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Tiffiny

3 months ago

Hmm, this one's a real balancing act. Inventory placement is no joke!

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Izetta

3 months ago

Gotta find that sweet spot between having enough inventory and not going broke on storage fees.

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Erin

3 months ago

Definitely need to weigh the tradeoffs between inventory costs and customer service levels.

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Truman

3 months ago

The cost of inventory storage and the availability of products to customers are key factors to consider.

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Precious

4 months ago

I feel like we discussed the impact of demand variability on inventory placement, but I can't recall all the specifics.

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Allene

4 months ago

There’s also the trade-off between transportation costs and storage costs, right? I hope I can remember the details during the exam.

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Ranee

5 months 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

5 months 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

5 months 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

5 months 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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Malika

5 months ago

Ugh, I'm a bit lost on this one. What exactly are the "multi-echelon" aspects we need to weigh here? Gotta make sure I understand the full context.

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Kara

5 months ago

Okay, I know we covered this in class. Let me try to remember the main trade-offs... cost, service levels, and responsiveness, right?

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Olga

6 months ago

Hmm, this seems like a tricky one. I'll need to think through the key factors to consider for inventory placement across the supply chain.

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