Exam CSCP topic 1 question 14 discussion

Actual exam question from APICS's CSCP

Question #: 14
Topic #: 1

Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

A. Inventory turnover ratio can be reduced.
B. Aggregate demand is more accurate than disaggregate demand.
C. The planning time fence can be adjusted as needed.
D. The supplier shares some risk for holding inventory.

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Suggested Answer: B 🗳️

by Zzzoe at Dec. 29, 2022, 4:10 a.m.

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Ayenco

8 months ago

Aggregate planning enables you to plan demand for a product family and not on individual product. Risk pooling allows you to be able to use same safety stock to cover for a group of products rather than maintaining different safety stock for individual product. Therefore aggregate planning helps you with the info necessary to do risk pooling for a group of similar products.

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