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APICS CSCP Exam - Topic 2 Question 72 Discussion

A firm usually buys one month of requirements at a time but has decided to buy two months of requirements for a certain product to take advantage of an order quantity discount...kely made this decision because:
B) ..The firm would like to spend less time on placing orders.
A) ..transportation costs will decrease since the firm is buying less often.
C) ..The firm has determined that the price savings are greater than the extra holding cost.
D) The firm wants to improve its inventory turns.

APICS CSCP Exam - Topic 2 Question 72 Discussion

Actual exam question for APICS's CSCP exam
Question #: 72
Topic #: 2
[All CSCP Questions]

A firm usually buys one month of requirements at a time but has decided to buy two months of requirements for a certain product to take advantage of an order quantity discount...kely made this decision because:

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Suggested Answer: B

by Nickolas at Jul 24, 2023, 09:33 PM

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Octavio
7 months ago
Wait, are they really saving that much by ordering two months?
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Freeman
8 months ago
Price savings over holding costs? Sounds like a smart move!
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Valda
8 months ago
Really? I doubt the holding costs are worth it.
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Leana
8 months ago
Totally makes sense to reduce order frequency!
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Edelmira
8 months ago
Buying in bulk usually cuts down on transportation costs.
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Rex
9 months ago
Improving inventory turns sounds good, but I don't think that's the primary reason for buying two months' worth. It feels like a stretch to me.
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Magdalene
9 months ago
I lean towards option C because it makes sense that they would weigh the price savings against holding costs. That was a key point in our last review.
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Herman
9 months ago
I remember a practice question where we discussed order frequency and time savings. Option B seems plausible, but I feel like there's more to it.
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Thomasena
9 months ago
I think the firm might be trying to save on transportation costs, but I'm not entirely sure if that's the main reason.
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Dong
9 months ago
I feel pretty confident about this one. Describing the process and evaluating the measurement system are core Measure Phase deliverables, so I should be able to do well on this.
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Hector
9 months ago
I'm pretty confident about this one. The federal government provides a significant portion of Medicaid funding, so I think the correct answer is C.
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Kenneth
9 months ago
Alright, for this type of question, I usually try to eliminate the options that I'm confident are not the answer. Then I can focus in on the remaining choices and try to determine the right one. Let me give that a shot here.
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Anastacia
9 months ago
Okay, I've got this. The senior responsible owner is the one who is accountable for the overall success of the programme and ensuring the desired outcomes are delivered. That's the role responsible for delivering the capability.
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Pauline
9 months ago
D sounds good because autonomy is key, but we didn't cover that as much in practice. Should I consider another option?
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Frank
1 year ago
Haha, I bet the procurement team is high-fiving each other right now, thinking they really pulled one over on the bean counters with this move!
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Deja
1 year ago
B is not quite right. The firm is likely buying more to save money, not just to reduce the time spent on orders.
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Fabiola
1 year ago
D is an interesting choice, but I don't think that's the primary reason. The firm is probably more focused on the financial implications than improving inventory turns.
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Jimmie
1 year ago
A) Transportation costs will decrease since the firm is buying less often.
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Earleen
1 year ago
C is a valid point, but I think D could also be a factor in their decision.
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Juliana
1 year ago
D) The firm wants to improve its inventory turns.
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Janae
1 year ago
C) The firm has determined that the price savings are greater than the extra holding cost.
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Jeannetta
1 year ago
I agree with C. The firm is likely trying to balance the trade-off between holding costs and the discount they'll get for buying more at once.
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Oretha
1 year ago
User 3: It's a smart move to take advantage of the order quantity discount.
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Maile
1 year ago
User 2: I agree, they must have calculated that the price savings outweigh the extra holding costs.
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Kimberlie
1 year ago
User 1: I think the firm is trying to save money by buying in bulk.
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Avery
1 year ago
The correct answer is C. The firm has determined that the price savings are greater than the extra holding cost. This makes the most sense for a firm looking to take advantage of an order quantity discount.
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France
1 year ago
Definitely. It's a smart move for the firm to take advantage of the discount by buying two months of requirements at once.
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Carin
1 year ago
That makes sense. It's all about maximizing savings when buying in bulk.
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Kyoko
1 year ago
I think the answer is C. The firm must have calculated that the price savings outweigh the extra holding cost.
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Ernie
1 year ago
But what about the inventory turns? Wouldn't buying in larger quantities help improve that as well?
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Mattie
1 year ago
I agree with Pearly. The firm probably calculated that the price savings outweigh the extra holding cost.
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Pearly
1 year ago
I think the firm chose to buy two months of requirements because they want to save money.
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