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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Dyan

1 months ago

D, hands down. Reduced lead times and lower costs? Sign me up! It's like a Black Friday sale, but all year round.

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Ozell

19 days ago

Definitely, it's a win-win situation. Plus, having excess stock can be costly and inefficient.

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Goldie

29 days ago

I agree, D seems like the best option. Who wouldn't want lower costs and faster lead times?

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Chauncey

1 months ago

I believe the answer would be option B, 1 and 3 only. Excess stock would not be a problem with low stock.

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Norah

1 months ago

I agree with you, Wilda. Stock may not be available at times of high demand.

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Wilda

1 months ago

I think the impact of low stock would be delays and higher costs.

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Thurman

2 months 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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Elvera

12 days ago

We don't want excess stock taking up warehouse space either. C is the way to go.

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Tashia

16 days ago

Definitely. Low stock can lead to delays and increased costs in the supply chain.

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Jess

18 days ago

Yeah, I agree. It's important to have the right amount of stock to meet demand.

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Matthew

24 days ago

I think C is the answer. Higher costs and longer lead times are not ideal.

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Deeanna

2 months 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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Kip

20 days ago

So, the correct answer would be A. 2 and 3 only.

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Mee

23 days ago

Definitely, it's important to have the right amount of stock to meet demand without extra costs.

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Hildegarde

1 months ago

Yeah, having excess stock just takes up space and doesn't help when demand is high.

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Gianna

1 months ago

I agree, delays and higher costs are a big problem when stock is low.

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Novella

2 months 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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Louvenia

1 months ago

I agree, low stock would definitely lead to delays and higher costs. Option B it is!

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Delisa

2 months ago

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

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