CIPS Exam L4M7 Topic 6 Question 54 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 54
Topic #: 6

[All L4M7 Questions]

Which of the following would be an impact of low stock in the supply chain?

Warehouse space would all be full with excess stock

There may be delays and higher costs to fulfill supply

Stock may not be available at times of high demand

Lead times would reduce and purchase costs would fall

A. 2 and 3 only B. 1 and 3 only C. 2 and 4 only D. 1 and 4 only

Show Suggested Answer

Suggested Answer:

Low stock levels can lead to:

Delays and higher fulfillment costs: When stock is insufficient, emergency orders and expedited shipping may be necessary, increasing costs.

Stockouts during high demand: Insufficient inventory can lead to missed sales opportunities, negatively impacting customer satisfaction.

Whole-life asset management seeks to balance inventory levels to avoid stockouts while minimizing holding costs.

by Rosita at Feb 11, 2025, 02:54 AM

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7 days ago

C is the answer, people! Higher costs and longer lead times are the name of the game. And who wants to pay more for less? Not this guy!

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8 days ago

I'm going with A. Delays and unavailable stock are the real deal when you're running low. Who needs extra space when you've got nothing to put in it?

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17 days ago

Option B all the way! Low stock means empty shelves, not full warehouses. Gotta keep those customers happy and stocked up.

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7 days ago

Option B is definitely the way to go. Empty shelves would not make customers happy.

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