APICS CSCP Exam - Topic 2 Question 72 Discussion

Actual exam question for APICS's CSCP exam

Question #: 72
Topic #: 2

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:

A..transportation costs will decrease since the firm is buying less often.

B..The firm would like to spend less time on placing orders.

C..The firm has determined that the price savings are greater than the extra holding cost.

DThe firm wants to improve its inventory turns.

Show Suggested Answer

Suggested Answer: B

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

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Octavio

5 months ago

Wait, are they really saving that much by ordering two months?

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Freeman

6 months ago

Price savings over holding costs? Sounds like a smart move!

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Valda

6 months ago

Really? I doubt the holding costs are worth it.

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Leana

6 months ago

Totally makes sense to reduce order frequency!

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Edelmira

6 months ago

Buying in bulk usually cuts down on transportation costs.

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Rex

7 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

7 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

7 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

7 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

7 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

7 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

7 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

7 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

7 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

12 months 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

12 months 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

12 months 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

10 months ago

A) Transportation costs will decrease since the firm is buying less often.

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Earleen

10 months ago

C is a valid point, but I think D could also be a factor in their decision.

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Juliana

10 months ago

D) The firm wants to improve its inventory turns.

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Janae

11 months ago

C) The firm has determined that the price savings are greater than the extra holding cost.

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Jeannetta

12 months 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

10 months ago

User 3: It's a smart move to take advantage of the order quantity discount.

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Maile

11 months ago

User 2: I agree, they must have calculated that the price savings outweigh the extra holding costs.

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Kimberlie

11 months 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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