CPIM Practice Exam

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Prepare for the CPIM Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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How many days of supply are currently on hand if there are 5,000 units in stock and projected sales of 58,500 units this year?

11.7 days
21.3 days
31.2 days
36.7 days

The correct answer is: 31.2 days

To determine how many days of supply are currently on hand, you need to calculate the average daily sales and then use that figure to find out how many days the current stock will last. Start by calculating the daily sales based on the projected annual sales. If there are projected sales of 58,500 units for the year, you first need to figure out how many sales occur on average each day. Since there are typically 365 days in a year, this is done by dividing the total annual sales by the number of days in a year: 58,500 units / 365 days = 160.27 units per day (approximately). Next, you can calculate the days of supply currently on hand by taking the number of units in stock (5,000 units) and dividing it by the daily sales rate: 5,000 units / 160.27 units per day = approximately 31.2 days. This calculation shows that if you maintain current sales volumes and have 5,000 units in stock, those units would last roughly 31.2 days before running out. This reveals a well-rounded understanding of inventory management, demonstrating how to assess how long current stock will last given certain sales projections.