APICS Exam CPIM-BSP Topic 3 Question 86 Discussion

Actual exam question for APICS's CPIM-BSP exam

Question #: 86
Topic #: 3

Which of the following factors would reduce inventory carrying costs?

AOrdering less inventory

BHigher costs of working capital

CReducing ordering costs

DReducing transportation costs

Show Suggested Answer

Suggested Answer: A

by Ettie at Apr 30, 2024, 02:06 PM

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6 months ago

Good points. Sticking with A for now. Carrying less inventory makes the most sense.

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6 months ago

True, but I feel transportation costs are not directly tied to carrying inventory.

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6 months ago

But what about reducing transportation costs? Wouldn't that also lower overall expenses?

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6 months ago

Yeah, ordering less would mean less inventory, thus lower carrying costs.

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7 months ago

Hmm, it's a bit tricky. I think it's A) Ordering less inventory.

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7 months ago

What do you think about the inventory carrying costs question?

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