Certified Professional Category Analyst (CPCA) Practice Questions 2025 – All-In-One Guide to Exam Success

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Which of the following best describes the measure of a store's inventory efficiency?

The total sales volume reported for all stores

The average number of days current inventory will last

The measure of a store's inventory efficiency is best described by the average number of days current inventory will last. This metric provides a clear indication of how effectively a store is managing its inventory in relation to sales. It reflects the duration that the current stock will support sales without restocking, allowing retailers to assess turnover rates and avoid overstock or stockouts.

Additionally, this measure helps businesses understand their supply chain dynamics and optimize their purchasing strategies. By maintaining a lower number of days inventory on hand, stores can demonstrate that they are selling products quickly, improving cash flow, and minimizing holding costs. A higher number of days could indicate inefficiencies in inventory management, such as overstocking or slow-moving products.

The other options, while related to sales and inventory in some capacity, do not directly measure inventory efficiency in the same holistic manner as the average number of days that inventory will last.

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Percentage of product sold per week

Volume of sales relative to inventory on hand

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