Ch. 3 Inventory Management 20252 Flashcard

Front

What is the purpose of ABC Analysis in inventory management?

Back

To categorize inventory based on importance

Front

Which of the following is NOT a part of inventory management?

• Ordering inventory
• Storing inventory
• Marketing inventory
• Selling inventory

Back

Marketing inventory

Front

Benefit of a large inventory?

Back

Reduced ordering and setup costs

Front

Which cost is associated with maintaining a small inventory?

Back

Lower storage costs

Front

What is one of the main purposes of inventory management?

Back

To keep the right amount of stock

Front

How does inventory management help in achieving economies of scale?

Back

By allowing bulk purchases at a discount

Front

How do companies use inventory to hedge against price increases?

Back

By buying more before prices rise

Front

What is a key reason for maintaining inventory during unpredictable events?

Back

To ensure continuous production

Front

Which type of inventory is kept for busy times of the year, like holidays?

Back

Seasonal Stock

Front

Which type of stock acts as a backup supply in case of delays or unexpected demand increases?

Back

Safety Stock