IPA IP 2024 Question 24
A question IPA Japan published in 令和6年度 ITパスポート試験 公開問題 問24, translated into English. ITPEC is based on the same exams.
The formula is a calculation formula for obtaining the order quantity of raw materials in the fixed-period ordering system. Which of the following is the appropriate combination of words and phrases to be inserted into A through C?
Order quantity = (A + procurement period) × planned daily usage + B
− current inventory − C
Explanation
A: ordering interval, B: safety stock, C: current outstanding orders — a fixed-period order must cover the use until the delivery after next, plus a buffer, less what is already held or on its way.
In the fixed-period ordering system, orders are placed at fixed intervals (for example every week) and the quantity is recalculated each time. The next order after this one arrives only after the ordering interval plus the procurement period, so this order must cover that whole span:
- •Expected use: (ordering interval + procurement period) × planned daily usage
- •Add the safety stock, kept against fluctuations in demand and delivery
- •Subtract the current inventory, which is already in hand
- •Subtract the current outstanding orders, which were ordered earlier and have not arrived yet but will
Answer (c)
Why not others:
- •(a) — uses the number of business days for the span to cover; the next delivery is one ordering interval plus the procurement period away
- •(b) — uses the number of business days and also swaps the last two terms
- •(d) — swaps the last two terms: outstanding orders will arrive and reduce what must be ordered, while the safety stock is extra stock to be added
Key rule: Fixed-period order quantity = (ordering interval + lead time) × daily usage + safety stock − inventory on hand − outstanding orders.
Corporate Activities · AI-written, may contain errors
This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.