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Exam CSCP topic 1 question 789 discussion

Actual exam question from APICS's CSCP
Question #: 789
Topic #: 1
[All CSCP Questions]

Which of the following factors is the key determinant of safety stock for finished goods?

  • A. Forecast variance
  • B. Mean absolute deviation (MAD)
  • C. Standard deviation
  • D. Desired service level
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Suggested Answer: D 🗳️

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Rajiv8047
11 months, 3 weeks ago
Selected Answer: D
The desired service level represents the probability of not facing a stockout, or in other words, the level of stock availability a company aims to maintain to meet customer demand without delay.
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