APICS Certified Supply Chain Professional (CSCP) — Question 448

Which of the following areas of concern is an important strategic inventory management decision?

Answer options

• A. How much inventory to order for each replenishment cycle
• B. Who is responsible for inventory record accuracy
• C. Where in the supply chain inventory should be kept
• D. When requests for additional inventory should be created for supply chain partners

Correct answer: A

Explanation

The correct answer, A, focuses on determining the appropriate amount of inventory needed for each replenishment cycle, which is crucial for maintaining optimal stock levels. Options B, C, and D, while important to inventory management, do not directly address the strategic decision of how much inventory to order, making them less critical in this context.