Certified Supply Chain Professional (CSCP) Practice Exam

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Prepare for the Certified Supply Chain Professional Exam with a comprehensive quiz featuring multiple choice questions and essential study material. Gain the knowledge and confidence needed to excel in your certification journey!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What does projected available balance (PAB) indicate?

The amount of inventory expected in stock at any future point
The total sales forecast for a specific period
The maximum allowable inventory level
An assessment of demand variability

The correct answer is: The amount of inventory expected in stock at any future point

Projected Available Balance (PAB) is a critical measure in inventory management that represents the expected amount of inventory on hand at a future point in time after accounting for all planned receipts and anticipated usage or sales. PAB helps organizations manage their inventory levels by providing insight into future stock availability, considering factors such as incoming shipments, production schedules, and sales forecasts. By calculating PAB, businesses can make informed decisions about when to reorder stock, how much to order, and how to avoid stockouts or excess inventory situations. This visibility enables better alignment of supply with demand, reducing carrying costs and improving service levels.