APICS Certified Supply Chain Professional (CSCP) — Question 8

An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in:

Answer options

• A. prices to the end user.
• B. supply chain cost of sales.
• C. the manufacturer's inventory.
• D. the total supply chain inventory.

Correct answer: D

Explanation

The correct answer is D because an increased inventory turnover rate typically means that inventory is being sold and replaced more quickly, indicating less total inventory held across the supply chain. Options A, B, and C do not directly relate to the turnover rate as they focus on pricing and costs rather than inventory levels.