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APICS CSCP Exam - Topic 1 Question 71 Discussion

Actual exam question for APICS's CSCP exam

Question #: 71
Topic #: 1

[All CSCP Questions]

A key assumption of the economic order quantity (EOQ) is that:

Afuture demand cannot be projected.

Bthe rate of demand is continuous and constant.

Creorder frequency is fixed.

Das the lot size decreases, the setup cost per unit decreases.

Show Suggested Answer

Suggested Answer: A

by Lisha at Jul 04, 2023, 08:02 PM

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Thad

7 months ago

I thought future demand could be projected in some cases?

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Vilma

8 months ago

Reorder frequency being fixed is also important, but not the main assumption here.

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Wilford

8 months ago

Wait, are we sure about that? Seems too simplistic.

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Staci

8 months ago

Totally agree, B is the right choice!

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Viva

8 months ago

The rate of demand is continuous and constant. That's key!

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Eleonore

9 months ago

I feel like I might be mixing up the assumptions. Wasn't there something about setup costs decreasing with lot size? That sounds familiar.

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Leonora

9 months ago

I’m pretty certain that the rate of demand being constant is crucial for EOQ. It seems to come up a lot in practice problems.

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Lewis

9 months ago

I remember practicing a question where the fixed reorder frequency was mentioned, but I can't recall if that's a key assumption of EOQ.

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Curtis

9 months ago

I think the EOQ assumes that demand is constant, but I'm not entirely sure if it's continuous too.

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Lacey

9 months ago

Hmm, this question is about MPLS and FEC, which I've covered in my studies. I think the key is understanding what FEC is and how it's used for forwarding decisions.

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Asuncion

9 months ago

Hmm, I'm a bit unsure about this one. I know we need to set up internet connectivity, but I'm not sure if we need a NAT gateway, an internet gateway, or both. I'll have to think this through carefully.

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Myong

9 months ago

I'm pretty confident that the answer is A. Local storage at the camera is the best way to reduce the impact on recorded video during server maintenance.

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Myrtie

9 months ago

This one seems pretty straightforward - I'm pretty sure administrative agency rules are published in the Federal Register, so I'll go with option B.

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Darrin

1 year ago

D) Decreasing setup costs? What is this, some kind of magic trick? The EOQ is all about balancing holding and ordering costs, not defying the laws of economics.

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Gayla

1 year ago

If the demand rate isn't constant, how are you supposed to calculate the optimal order quantity? B is clearly the right answer, duh.

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Crista

1 year ago

A) future demand cannot be projected? Really? That's like the opposite of what the EOQ is all about. B is the way to go, no doubt.

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Tesha

1 year ago

Hmm, I was leaning towards D, but I can see how that wouldn't be a core assumption of the model. Gotta love those tricky supply chain questions!

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Tina

1 year ago

Gayla: Definitely, it simplifies the calculations and helps in optimizing inventory levels.

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Celestine

1 year ago

User 3: Yeah, it makes sense to assume a constant demand for the model to work effectively.

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Gayla

1 year ago

User 2: I agree, that's a key assumption for EOQ calculations.

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Sabra

1 year ago

User 1: I think the answer is B) the rate of demand is continuous and constant.

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Doretha

1 year ago

I was torn between B and C, but I think B makes the most sense. The EOQ model requires a stable, predictable demand pattern.

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Chandra

1 year ago

User 3: I think we can all conclude that option B is the correct assumption for EOQ.

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Tiera

1 year ago

User 2: Yeah, the EOQ model definitely relies on a constant rate of demand.

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Barabara

1 year ago

User 1: I agree, option B seems to be the most logical choice.

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Mollie

1 year ago

The correct answer is B) the rate of demand is continuous and constant. This is a key assumption of the EOQ model.

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Ronald

1 year ago

So, we need to consider the constant rate of demand when calculating EOQ.

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Katlyn

1 year ago

Yes, that's correct. It helps in determining the optimal order quantity.

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Aretha

1 year ago

I think the key assumption of EOQ is that the rate of demand is continuous and constant.

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Hoa

1 year ago

I'm not sure, but I think it's C.

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Tarra

1 year ago

I agree with Phyliss, the assumption is that the rate of demand is continuous and constant.

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Phyliss

1 year ago

I think the answer is B.

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Aliza

1 year ago

I'm not sure, but I think it's C.

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Alease

1 year ago

I agree with Denae, the assumption is that the rate of demand is continuous and constant.

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Denae

1 year ago

I think the answer is B.

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