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Exam CSCP topic 1 question 118 discussion

Actual exam question from APICS's CSCP
Question #: 118
Topic #: 1
[All CSCP Questions]

A company that sells 60 units of product in a given year and has an average quantity on hand of 10 units. There are 360 selling days and 261 production days in the year. The company has on hand how many days of product inventory?

  • A. 0.16
  • B. 0.23
  • C. 43
  • D. 60
Show Suggested Answer Hide Answer
Suggested Answer: D 🗳️
by Nowaz at Feb. 1, 2022, 4:04 p.m.

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Rajiv8047
2 weeks, 5 days ago
Selected Answer: D
Average daily demand = Total annual demand / Number of selling days Average daily demand = 60 units / 360 days Average daily demand = 0.167 units per day Inventory days of supply = Average quantity on hand / Average daily demand Inventory days of supply = 10 units / 0.167 units per day Inventory days of supply = 60 days
upvoted 1 times
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Alizade
9 months, 1 week ago
= 10 units / (60 units / 360 days) = 10 units / (0.1667 units/day) = 60 days So the answer is C.
upvoted 1 times
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Wild3d
1 year, 1 month ago
Selected Answer: C
Answer C is correct: It is about the production days, not the selling days. Therefore the formula looks like this: 261/60 = 4.35 days to produce one unit 4.35 * 10 = 43.5 days worth of produced goods are in their inventory
upvoted 2 times
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Ayenco
1 year, 1 month ago
Shouldn't answer be 1.67 here? 10*(60/360)
upvoted 1 times
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Nowaz
2 years, 3 months ago
Anybody got any idea what's going on here? lol
upvoted 1 times
Fairy1015
2 years, 3 months ago
10/60*360
upvoted 5 times
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