Discuss APICS CSCP Exam Topic 4 Question 129

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

AConsumption rate

BQualified supplier

CABC classification

DNumber of sales transactions

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.

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21 comments · newest first

Eugene 2 days ago

D) Number of sales transactions gives insight into demand.

Argelia 7 days ago

C) ABC classification helps prioritize items. Very important!

Rima 12 days ago

I agree, but B) Qualified supplier matters too. Can't have delays.

Rima 18 days ago

I think A) Consumption rate is crucial. It shows how much we need.

Avery 23 days ago

I feel A is the most direct measure of need.

Natalie 28 days ago

C is useful for managing stock efficiently.

Iesha 1 month ago

I like B. Without a qualified supplier, it’s risky.

Levi 1 month ago

A and D together seem best. They show real demand.

Tamar 1 month ago

D makes sense. More sales mean higher inventory needs.

Emilio 2 months ago

I lean towards C. ABC classification helps prioritize.

Belen 2 months ago

Agreed, but B is important too. A reliable supplier is key.

Kristofer 2 months ago

I think A is crucial. Consumption rate affects everything.

Ryan 2 months ago

Wait, are we really factoring in all these inputs? Sounds complicated!

Markus 2 months ago

Number of sales transactions? That seems a bit off to me.

King 2 months ago

I think ABC classification is overrated for minimum levels.

Adelina 3 months ago

A qualified supplier is crucial too, can't overlook that.

Jennie 3 months ago

Definitely need to consider the consumption rate!

Bernadine 3 months ago

The number of sales transactions seems relevant too, but I’m not clear on how it ties into setting a minimum inventory level.

Isadora 3 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.

Jennifer 3 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.

Elbert 4 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.

APICS CSCP Exam - Topic 4 Question 129 Discussion