Certified Supply Chain Professional (CSCP) Practice Exam

What does inventory control primarily focus on?

1. Minimizing costs of goods sold

2. Maintaining desired levels of items

3. Increasing sales through promotions

4. Inventory disposal methods

The correct answer is: Maintaining desired levels of items

Inventory control primarily focuses on maintaining desired levels of items to ensure that a company has the right amount of stock available at the right time. This involves balancing the need to meet customer demand while avoiding overstock situations that can lead to increased holding costs or obsolescence. Effective inventory control helps to optimize stock levels, enhance order fulfillment, and improve cash flow. It requires constant monitoring and adjustments based on factors such as demand fluctuations, lead times, and seasonal trends. By maintaining optimal inventory levels, businesses can streamline their operations and reduce unnecessary expenditure associated with excess inventory or stockouts. The other options pertain to different aspects of supply chain management. While minimizing costs of goods sold is important, it is not the central focus of inventory control, which is more about volume and availability of inventory. Increasing sales through promotions relates to marketing strategies rather than inventory management itself. Lastly, inventory disposal methods deal with strategies for handling surplus or obsolete inventory, which is outside the primary scope of inventory control.