Exam CSCP topic 1 question 118 discussion

Actual exam question from APICS's CSCP

Question #: 118
Topic #: 1

A company that sells 60 units of product in a given year and has an average quantity on hand of 10 units. There are 360 selling days and 261 production days in the year. The company has on hand how many days of product inventory?

A. 0.16
B. 0.23
C. 43
D. 60

Show Suggested Answer

Suggested Answer: D 🗳️

by Nowaz at Feb. 1, 2022, 4:04 p.m.

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Rajiv8047

6 months, 4 weeks ago

Selected Answer: D

Average daily demand = Total annual demand / Number of selling days Average daily demand = 60 units / 360 days Average daily demand = 0.167 units per day Inventory days of supply = Average quantity on hand / Average daily demand Inventory days of supply = 10 units / 0.167 units per day Inventory days of supply = 60 days

upvoted 3 times

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Alizade

1 year, 3 months ago

= 10 units / (60 units / 360 days) = 10 units / (0.1667 units/day) = 60 days So the answer is C.

upvoted 2 times

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Wild3d

1 year, 7 months ago

Selected Answer: C

Answer C is correct: It is about the production days, not the selling days. Therefore the formula looks like this: 261/60 = 4.35 days to produce one unit 4.35 * 10 = 43.5 days worth of produced goods are in their inventory

upvoted 2 times

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Ayenco

1 year, 7 months ago

Shouldn't answer be 1.67 here? 10*(60/360)

upvoted 1 times

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Nowaz

2 years, 9 months ago

Anybody got any idea what's going on here? lol

upvoted 1 times

Fairy1015

2 years, 9 months ago

10/60*360

upvoted 5 times

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