CIPS Exam L3M2 Topic 1 Question 13 Discussion

Actual exam question for CIPS's L3M2 exam

Question #: 13
Topic #: 1

[All L3M2 Questions]

The letters 'EOQ' refer to:

AA person's level of 'emotional intelligence'

BThe notion of there being a best time to order

CThe idea of an optimum quantity to order

DThe idea of an optimum quality to order

Show Suggested Answer

Suggested Answer: C

The Economic Order Quantity is a formula which attempts to calculate the most efficient quantity to order at any given time, by attempting to reconcile the cost of stockholding and the cost of plac-ing an order. This could then have implications for the timing of an order being placed.

The cost of holding stock can be reasonably accurately calculated and agreed with one's peers. However, determining the cost of placing an order can keep colleagues up late into the night, and can be a great topic to liven up a sleepy procurement / finance function.

by Estrella at Jun 23, 2024, 03:25 PM

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Wava

4 months ago

C is the way to go, my friends. The 'EOQ' is all about that sweet, sweet economic optimization. Gotta love those numbers!

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Daniel

2 months ago

I think C makes the most sense too. It's all about maximizing profits and minimizing costs.

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Zoila

3 months ago

Yeah, I always aim for that optimum quantity when placing orders. It's all about efficiency.

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Fannie

3 months ago

I agree, C is definitely the right answer. It's all about finding that sweet spot for ordering.

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Mona

3 months ago

I always struggle with inventory management, but EOQ really helps with figuring out the best quantity to order.

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Beula

3 months ago

Yeah, EOQ is all about maximizing efficiency and minimizing costs. C is the way to go.

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Ty

3 months ago

I agree, C is definitely the right answer. It's all about finding that sweet spot for ordering.

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Aimee

4 months ago

Actually, Rodolfo, I believe the correct answer is C) The idea of an optimum quantity to order because it helps minimize costs.

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Franchesca

4 months ago

Haha, A is a good one! I bet the 'EOQ' stands for 'Extremely Odd Quirks'. You know, those hidden personality traits that make us unique.

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Ashleigh

4 months ago

Hmm, I'm going to go with D. The 'EOQ' must be related to the optimal quality to order, right? Gotta get that quality on point!

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Kris

3 months ago

You might be right, but I still believe it's D. Quality is key in ordering the right things.

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Melvin

4 months ago

I think it's actually C. The 'EOQ' is about finding the optimum quantity to order.

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Rodolfo

4 months ago

I'm not sure, but I think it might be B) The notion of there being a best time to order.

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Mattie

4 months ago

I agree with Alexia, EOQ definitely refers to the optimum quantity to order.

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Annamaria

4 months ago

I think B is the correct answer. The 'EOQ' refers to the best time to order, which is an important concept in inventory management.

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Julio

3 months ago

No, it's not B. It's C. The 'EOQ' is definitely about finding the optimum quantity to order.

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Diane

3 months ago

Actually, I believe it's B. The 'EOQ' is about the best time to order, not the quantity.

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Alishia

3 months ago

I agree with you, C is the correct answer. It's all about finding the right quantity to order.

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Meaghan

4 months ago

I think C is the correct answer. The 'EOQ' refers to the idea of an optimum quantity to order.

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Alexia

5 months ago

I think the answer is C) The idea of an optimum quantity to order.

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Mignon

5 months ago

I'm pretty sure the answer is C. The 'EOQ' stands for 'Economic Order Quantity', which is the idea of determining the optimal order quantity to minimize costs.

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Ellen

4 months ago

Yes, you're right. It's about finding the optimum quantity to order.

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Crissy

4 months ago

I agree, the answer is C. 'EOQ' stands for Economic Order Quantity.

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