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CIPS L4M7 Exam - Topic 5 Question 14 Discussion

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?
C) Decreasing safety stock
A) Increasing safety stock
B) Expanding replenishment lead time
D) Holding more cycle stock

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
8 months ago
97% service level is ambitious, but totally doable with the right strategy!
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Carlee
8 months ago
Wait, why would anyone decrease safety stock? That sounds risky!
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Valentine
9 months ago
Holding more cycle stock might help too!
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Merilyn
9 months ago
I disagree, expanding lead time could slow things down.
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Oliva
9 months ago
Increasing safety stock seems like the way to go!
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Amalia
9 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
9 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
9 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
9 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
9 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
9 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
9 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
10 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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