CIPS Exam L4M7 Topic 6 Question 20 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 20
Topic #: 6

[All L4M7 Questions]

The size of order that minimises the total cost of acquiring and holding stock is known as...

AOrder quantity

BEconomic Order Quantity

CThe correct quantity

DAverage 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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Raelene

2 days ago

I agree with Veda, because EOQ helps in minimizing total cost.

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Veda

4 days ago

I think the answer is B) Economic Order Quantity.

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