APICS Exam CPIM-MPR Topic 4 Question 95 Discussion

Actual exam question for APICS's CPIM-MPR exam

Question #: 95
Topic #: 4

[All CPIM-MPR Questions]

Which of the following tradeoffs should be considered to improve the performance of a distribution network?

AReduce cost but improve customer service by using full truckload or carload shipments

BIncrease inventory turns but decrease costs by shipping more frequently

CImprove profit but decrease inventory by not scrapping obsolete product

DImprove fill rate but decrease inventory turns by adding safety stock

Show Suggested Answer

Suggested Answer: D

by Florinda at Aug 24, 2024, 07:44 PM

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Francisca

4 months ago

If I had a dollar for every time I had to balance inventory and customer service, I'd be a millionaire. D is the way to go, folks.

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Trinidad

3 months ago

I see your point, but C is also crucial for improving profit and reducing obsolete inventory.

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Glendora

3 months ago

That's true, but increasing inventory turns with option B could also be beneficial in the long run.

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Amira

3 months ago

But what about A? Full truckload shipments could also help reduce costs and improve customer service.

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Ma

3 months ago

I agree, D is definitely important for balancing fill rate and inventory turns.

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Milly

4 months ago

Is it just me, or does this question sound like a bad game of Tetris? Gotta fit all those tradeoffs together!

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Tyra

3 months ago

C) Improve profit but decrease inventory by not scrapping obsolete product

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Leota

4 months ago

B) Increase inventory turns but decrease costs by shipping more frequently

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Natalie

4 months ago

A) Reduce cost but improve customer service by using full truckload or carload shipments

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Golda

4 months ago

D is the correct answer. Who wants to deal with angry customers because of low fill rates? Safety stock is the way to go.

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Rosalyn

4 months ago

Hmm, I'm not sure. D sounds good, but C also makes sense. Improving profit by not scrapping obsolete product could be a smart move.

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Vashti

3 months ago

Maybe a combination of both D and C could work best for the distribution network.

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Grover

3 months ago

True, it's a tough decision. Both options have their benefits.

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Elli

3 months ago

But C is also important. Not scrapping obsolete product can increase profit.

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Anika

4 months ago

I think D is a good option. Adding safety stock can help improve fill rate.

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Micah

4 months ago

I think option B strikes a good balance between inventory turns and costs.

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Dominga

4 months ago

But adding safety stock can increase costs in the long run.

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Jess

4 months ago

I disagree, I believe option D is more beneficial.

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Micah

4 months ago

B is the way to go! Increasing inventory turns and decreasing costs by shipping more frequently is a win-win.

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Gabriele

4 months ago

Definitely, shipping more frequently can help with that.

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Fredric

4 months ago

I agree, increasing inventory turns is key to improving performance.

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Yen

5 months ago

I think the answer is D. Improving fill rate by adding safety stock is a great way to balance customer service and inventory costs.

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Mari

4 months ago

Yes, but it's a tradeoff to consider for better customer service.

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Aleshia

4 months ago

But what about A? Reducing cost while improving customer service also seems like a good tradeoff.

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Johnna

4 months ago

I agree, D seems like the best option to balance customer service and inventory costs.

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Lina

4 months ago

But wouldn't that decrease inventory turns?

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Huey

4 months ago

I agree, adding safety stock can help improve fill rate.

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Dominga

5 months ago

I think option A is the best tradeoff.

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