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Exam CSCP topic 1 question 76 discussion

Actual exam question from APICS's CSCP
Question #: 76
Topic #: 1
[All CSCP Questions]

Which of the following statements represents a major assumption needed to effectively use days of supply as a measure?

  • A. The reorder point for the inventory has been calculated correctly.
  • B. The forecast for the item usage is reasonably accurate.
  • C. The item is in the growth phase of the product life cycle.
  • D. The item is subjected to statistical process control (SPC) during production.
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️
by Nowaz at Feb. 4, 2022, 10:03 p.m.

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Acaua
Highly Voted 2 years ago
Selected Answer: B
Days of Supply formula = On-hand inventory/Avg. Daily Demand Therefore, one has to have a decent level of accuracy in the demand forecast to be able to use this measure properly.
upvoted 5 times
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Rajiv8047
Most Recent 1 year ago
Selected Answer: B
The forecast for the item usage is reasonably accurate.
upvoted 1 times
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Santosh_Venkat
1 year, 9 months ago
Selected Answer: B
Option B seems to be the most accurate. I fail to see how it can be D. Any thoughts?
upvoted 2 times
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flyover11300
2 years, 6 months ago
Forecast has to be reasonably accurate to use days of supply or else demand could strip supply at a higher rate and your calcs would be wrong. I agree they that mgmt would want to know days of supply but that is not an input into days of supply calc
upvoted 1 times
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Cancun
2 years, 9 months ago
The answer is “C”, mgmt would want to know days of supply for a growth product.
upvoted 1 times
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Nowaz
2 years, 9 months ago
I think the answer should be B
upvoted 4 times
...

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A (35%)
C (25%)
B (20%)
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