SBE Individual Certification: Inventory Management

Front

This refers to the entirety of a business's products that are on-hand and available for sale to customers.

Back

Inventory

Front

The process of buying and storing materials and products while controlling costs for ordering, shipping, handling, and storage.

Back

Inventory Management

Front

The primary objective of inventory management is to:

Back

minimize holding costs.

Front

Using this system of inventory management, products and materials are ordered and delivered as close to the actual time they will be needed as possible. This avoids costs associated with storage and potential spoilage.

Back

Just-In-Time Inventory Management

Front

The person responsible for planning and ordering inventory: Distributor, Buyer

Back

Buyer

Front

Amount added to the cost of a product to determine the selling price:

Back

Markup

Front

This includes all of the logistical components involved in moving products through the channel of distribution to the final consumer.

Back

Physical Distribution

Front

The amount of money a company spends to keep inventory safe and stored over a certain length of time. It is also known as holding cost and inventory cost.

Back

Carrying Cost

Front

What inventory method assumes that the most recent products added to a company’s inventory have been sold first? Options: LIFO, FIFO

Back

LIFO

Front

What inventory management method keeps products going continuously to avoid waste and is used for products with expiration dates, such as food and medicine?

Back

FIFO