APICS Certified Supply Chain Professional (CSCP) — Question 162

An item must be added to inventory to support new business. Which of the following inputs should be considered to determine minimum inventory level?

Answer options

• A. Consumption rate
• B. Qualified supplier
• C. ABC classification
• D. Number of sales transactions

Correct answer: A

Explanation

The consumption rate is critical for determining the minimum inventory level because it indicates how quickly items are used or sold. While a qualified supplier, ABC classification, and the number of sales transactions are important for inventory management, they do not directly influence the calculation of the minimum stock needed.