CIPS Exam L4M7 Topic 3 Question 42 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 42
Topic #: 3

[All L4M7 Questions]

Which of the following best describes available inventory (also known as inventory position)?

AThe amount of inventory on hand

BThe amount of inventory on hand plus the amount of inventory on order

CThe amount of inventory on order only

DThe amount of inventory on hand in excess of expected demand

Show Suggested Answer

Suggested Answer: B

Available inventory (or Inventory position - IP) is equal to inventory on-hand plus quantity on order minus backorder (if any)

LO 2, AC 2.3

by Viva at Aug 25, 2024, 08:08 AM

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Nilsa

3 months ago

C seems a bit too narrow. Inventory position should reflect the full supply picture.

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Marcos

3 months ago

I'm going with B. Gotta keep track of the whole picture to manage stock effectively.

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Tamesha

3 months ago

Haha, I bet the correct answer is 'all of the above' - inventory management is never that straightforward!

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Mike

2 months ago

D) The amount of inventory on hand in excess of expected demand

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Jennifer

2 months ago

C) The amount of inventory on order only

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Marla

2 months ago

B) The amount of inventory on hand plus the amount of inventory on order

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Buck

2 months ago

A) The amount of inventory on hand

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Francine

3 months ago

I think the answer is A) The amount of inventory on hand, as that seems like the most basic definition.

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Gene

3 months ago

D is definitely not right - that's just excess inventory, not the overall position.

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Johnna

2 months ago

B) The amount of inventory on hand plus the amount of inventory on order

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Susy

2 months ago

A) The amount of inventory on hand

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Destiny

2 months ago

B) The amount of inventory on hand plus the amount of inventory on order

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Kate

2 months ago

A) The amount of inventory on hand

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Margarita

3 months ago

I'm not sure, but I think it might be D) The amount of inventory on hand in excess of expected demand.

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Fletcher

3 months ago

I agree with Wilburn, because it gives a more comprehensive view of the inventory position.

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Graciela

3 months ago

Option B seems the most comprehensive to me. Inventory position should account for both what's on hand and what's on order.

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Kris

2 months ago

Definitely, knowing the total inventory position helps in making informed decisions about ordering and stocking levels.

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Juliana

3 months ago

Yes, having visibility into both current inventory and future inventory is crucial for effective inventory management.

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Ivette

3 months ago

I agree, option B is the most comprehensive. It's important to know both what's on hand and what's on order.

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Wilburn

4 months ago

I think the answer is B) The amount of inventory on hand plus the amount of inventory on order.

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