CIPS Exam L4M7 Topic 6 Question 20 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 20
Topic #: 6

A retailer wants to improve its service level in inventory management from 95% to 97%. Which of the following is the best course of action?

AIncreasing safety stock

BExpanding replenishment lead time

CDecreasing safety stock

DHolding more cycle stock

Show Suggested Answer

Suggested Answer: C

For single items, an extra investment in inventory (higher levels of safety stock) will always in-crease customer service levels. Conversely, higher service levels imply larger quantities of safety stocks and an increased investment in inventory. (Procurement and Supply Chain Management - 9th Edition)

LO 2, AC 2.2

by Van at Aug 04, 2023, 02:39 PM

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