APICS Certified Supply Chain Professional (CSCP) — Question 366

A company has 10,000 units of a product on hand. Annual usage is 50,000 units. There are 250 working days in the year. The company has how many days of supply?

Answer options

• A. 40
• B. 50
• C. 160
• D. 200

Correct answer: B

Explanation

To calculate the days of supply, divide the on-hand inventory (10,000 units) by the daily usage (50,000 units / 250 days = 200 units per day). This results in 10,000 / 200 = 50 days of supply. The other options do not accurately reflect this calculation.