CLT MOD. 5: INVENTORY CONTROL

Reverse inventory refers to:

• automated flow of materials

• use of directional devices

• warehouse labeling systems

• returned merchandise

Two logistics students, Mark and Sarah are discussing inventory control. Mark says that two common order picking errors are picking the wrong amount and picking the wrong material. Sarah says that just-in-time (JIT) inventory control focuses attention on choosing the right amounts of the right materials. Which student – Mark or Sarah – is correct?

• Mark is correct

• Sarah is correct

• Both are correct

• Neither is correct

Two logistics students, Mark and Sarah are discussing inventory control. Mark says that one aspect of inventory control is determining when products need to be restocked. Sarah says that one ordering approach is cyclical ordering. Which student – Mark or Sarah – is correct?

• Mark is correct

• Sarah is correct

• Both are correct

• Neither is correct

Which type of inventory control methods says that the oldest item received is the first item to be sold or delivered?

• ABC

• FIFO

• LIFO

• JIT

Two logistics students, Mark and Sarah are discussing inventory control and counting. Mark says that all links in the supply chain manage inventory the same way. Sarah says that the first and most important aspect of inventory control is to know the number of each SKU held in your facility. Which student – Mark or Sarah – is correct

• Mark is correct

• Sarah is correct

• Both are correct

• Neither is correct

Two logistics students, Mark and Sarah are discussing inventory control systems. Mark says that automated data capture systems help eliminate human error. Sarah says that in automated systems, the flow of materials is controlled so there is little or no mistake as to where materials are to go. Which student – Mark or Sarah – is correct?

• Mark is correct

• Sarah is correct

• Both are correct

• Neither is correct

Two logistics students, Mark and Sarah are discussing inventory control systems. Mark says that the basic concept of just-in-time (JIT) is to produce just enough units at just the right time. Sarah says that JIT is the best inventory control system for any type of logistics facility. Which student – Mark or Sarah – is correct?

• Mark is correct

• Sarah is correct

• Both are correct

• Neither is correct

Two logistics students, Mark and Sarah are discussing inventory control. Mark says that aggregate inventory involves total inventory movement. Sarah says that most front-line workers will work with item inventory management. Which student – Mark or Sarah – is correct?

• Mark is correct

• Sarah is correct

• Both are correct

• Neither is correct

Two logistics students, Mark and Sarah are discussing inventory control. Mark says that there are many types of inventory and the type determines the treatment it receives throughout the supply chain. Sarah says that work-in-process inventory consists of component inventory used to feed into production or manufacturing lines. Which student – Mark or Sarah – is correct?

• Mark is correct

• Sarah is correct

• Both are correct

• Neither is correct

Two logistics students, Mark and Sarah are discussing inventory control. Mark says that inventories are materials and supplies carried on hand either for sale or production purposes. Sarah says that inventory control includes managing storage space and tracking materials. Which student – Mark or Sarah – is correct?

• Mark is correct

• Sarah is correct

• Both are correct

• Neither is correct