Certified Supply Chain Professional (CSCP) Practice Exam

What aspect does the content of inventory management primarily concern?

1. Sales trends

2. Product design

3. Inventory level and turnover

4. Procurement costs

The correct answer is: Inventory level and turnover

The focus of inventory management primarily concerns inventory levels and turnover because it deals with how much stock is kept on hand and how quickly that stock is sold or used. Effective inventory management ensures that there is an optimal amount of inventory to meet customer demand without overstocking, which can tie up capital and lead to increased holding costs. It involves monitoring inventory levels, analyzing turnover rates, and making decisions regarding when to replenish stock to maintain efficiency in supply chain operations. In this context, other aspects like sales trends, product design, and procurement costs, while related to inventory management, don't directly address the core functions of managing inventory itself. Sales trends can influence inventory decisions but are not the primary focus. Product design may affect the type of inventory carried but does not pertain to the management of inventory levels or turnover directly. Procurement costs are important but are usually considered in the broader context of supply chain costs rather than the specific management of inventory. Thus, the correct choice reflects the essential activities and concerns within inventory management.