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APICS CSCP Exam - Topic 4 Question 129 Discussion

An item must be added to inventory to support new business. Which of the following inputs should be considered to determine minimum inventory level?
A) Consumption rate
B) Qualified supplier
C) ABC classification
D) Number of sales transactions

APICS CSCP Exam - Topic 4 Question 129 Discussion

Actual exam question for APICS's CSCP exam
Question #: 129
Topic #: 4
[All CSCP Questions]

An item must be added to inventory to support new business. Which of the following inputs should be considered to determine minimum inventory level?

Show Suggested Answer Hide Answer
Suggested Answer: A

Determining the minimum inventory level for a new item requires understanding its consumption rate, which indicates how quickly the item is used or sold. This information is critical for setting appropriate inventory levels to ensure availability while minimizing excess stock. By analyzing the consumption rate, businesses can better forecast demand, set reorder points, and maintain optimal inventory levels to support the new business without overstocking.


Vollmann, T.E., Berry, W.L., Whybark, D.C., & Jacobs, F.R. (2005). Manufacturing Planning and Control for Supply Chain Management. McGraw-Hill.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

Contribute your Thoughts:

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Emilio
3 days ago
I lean towards C. ABC classification helps prioritize.
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Belen
8 days ago
Agreed, but B is important too. A reliable supplier is key.
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Kristofer
14 days ago
I think A is crucial. Consumption rate affects everything.
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Ryan
19 days ago
Wait, are we really factoring in all these inputs? Sounds complicated!
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Markus
24 days ago
Number of sales transactions? That seems a bit off to me.
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King
29 days ago
I think ABC classification is overrated for minimum levels.
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Adelina
1 month ago
A qualified supplier is crucial too, can't overlook that.
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Jennie
1 month ago
Definitely need to consider the consumption rate!
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Bernadine
1 month ago
The number of sales transactions seems relevant too, but I’m not clear on how it ties into setting a minimum inventory level.
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Isadora
2 months ago
I feel like ABC classification might help prioritize which items to stock, but I can't recall if it's directly related to minimum inventory levels.
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Jennifer
2 months ago
I remember a practice question that focused on supplier reliability, so I wonder if the qualified supplier option could also play a role here.
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Elbert
2 months ago
I think the consumption rate is really important for determining how much inventory we need, but I'm not sure if it's the only factor.
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