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Exam CLTD topic 1 question 89 discussion

Actual exam question from APICS's CLTD
Question #: 89
Topic #: 1
[All CLTD Questions]

A carrier takes three weeks to deliver a product which has average sales of 1,000 units per week. The unit cost is $20 each and the carrying cost is 15%. What is the savings in the transportation inventory cost if management decides to change the mode of transportation to decrease time to one week?

  • A. $2,000
  • B. $3,000
  • C. $6,000
  • D. $9,000
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Suggested Answer: C 🗳️
by alinmar at Oct. 24, 2020, 8:09 p.m.

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Ramhari
11 months, 3 weeks ago
I think 6000. 3 weeks lead time so 3 days inventory =3*1000*20*.15 = 9000 now Better transportation so 1 week lead time so 1 days inventory =1*1000*20*.15=3000 So savings are 9000-3000=6000
upvoted 1 times
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Riyasharon
11 months, 3 weeks ago
$20x1000×15%= 3000 2 weeks lead time Is 3000x2 = $6000 Ans C
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Ritaakl
11 months, 4 weeks ago
$20x2000×15%= 3000 2 weeks lead time is 3000x2
upvoted 1 times
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alinmar
1 year, 7 months ago
what is the formula for this answer? I think correct answer is A
upvoted 1 times
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C (25%)
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