APICS Exam CSCP Topic 1 Question 70 Discussion

Actual exam question for APICS's CSCP exam

Question #: 70
Topic #: 1

[All CSCP Questions]

Which of the following factors is the key determinant of safety stock for finished goods?

AForecast variance

BMean absolute deviation (MAD)

CStandard deviation

DDesired service level

Show Suggested Answer

Suggested Answer: B

by Jamal at May 26, 2023, 11:18 AM

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Lourdes

2 days ago

But what about A) Forecast variance? Doesn't that also play a role in determining safety stock?

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Kristeen

4 days ago

I agree with Ria, because the desired service level directly impacts the safety stock.

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Kris

6 days ago

C) Standard deviation seems like the obvious choice here. I mean, the higher the variability in demand, the more safety stock you'll need to keep things running smoothly.

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Ria

12 days ago

I think the key determinant is D) Desired service level.

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