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APICS Exam CSCP 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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Frank
12 days 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
16 days 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
17 days 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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Jeannetta
20 days 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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Avery
1 months 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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Kyoko
10 days 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
2 months ago
But what about the inventory turns? Wouldn't buying in larger quantities help improve that as well?
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Mattie
2 months ago
I agree with Pearly. The firm probably calculated that the price savings outweigh the extra holding cost.
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Pearly
2 months ago
I think the firm chose to buy two months of requirements because they want to save money.
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