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CIPS L4M7 Exam - Topic 5 Question 14 Discussion

Actual exam question for CIPS's L4M7 exam
Question #: 14
Topic #: 5
[All L4M7 Questions]

A retailer wants to improve its service level in inventory management from 95% to 97%. Which of the following is the best course of action?

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Suggested Answer: C

For single items, an extra investment in inventory (higher levels of safety stock) will always in-crease customer service levels. Conversely, higher service levels imply larger quantities of safety stocks and an increased investment in inventory. (Procurement and Supply Chain Management - 9th Edition)


LO 2, AC 2.2

by Sylvie at Mar 20, 2023, 02:02 PM

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Dorinda
4 months ago
97% service level is ambitious, but totally doable with the right strategy!
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Carlee
4 months ago
Wait, why would anyone decrease safety stock? That sounds risky!
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Valentine
4 months ago
Holding more cycle stock might help too!
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Merilyn
4 months ago
I disagree, expanding lead time could slow things down.
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Oliva
4 months ago
Increasing safety stock seems like the way to go!
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Amalia
5 months ago
Holding more cycle stock might help, but I wonder if it really addresses the service level goal directly. I need to think about how that relates to the other options.
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Vince
5 months ago
Decreasing safety stock seems counterintuitive if we're trying to improve service levels, right? I feel like that's definitely not the answer.
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Jeff
5 months ago
I think expanding replenishment lead time could actually hurt service levels, but I can't recall the exact reasons why.
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Hildred
5 months ago
I remember we discussed how increasing safety stock can help improve service levels, but I'm not entirely sure if it's the best option here.
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Angelyn
5 months ago
I'm a little confused by the wording of the question. Is it asking about the police force's perspective on the events, or the local authority's perspective? I want to make sure I interpret this correctly.
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Annamae
5 months ago
This seems like a straightforward risk assessment question. I'd focus on understanding the key goal of the risk assessment - determining the probability and impact of each risk event.
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Demetra
5 months ago
I remember that in a similar practice question, separating resources into nested stacks helped clarify ownership, but I'm not sure if that's the best choice here.
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Jonelle
5 months ago
Hmm, I'm not totally sure about this one. I'll need to think it through carefully and review my notes on the PRM system.
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