N5 Inventory Control

It is important to control inventory so that a business neither over or understocks?

• True

• False

What is the name given to the time taken from ordering to delivery?

• Delivery Time

• Order Time

• Lead Time

• Extra Time

What is the name given to the largest amount of stock that should be held?

• Minimum Stock Level

• Average Stock Level

• Maximum Stock Level

• Reorder Level

What is the name given to the number of stock items that should be ordered when the reorder level is reached?

• Maximum Stock Level

• Reorder Quantity

• Minimum Stock Level

• Buffer Stock

What is the name given to the amount of stock that is left to sell after new stock is ordered but has not been received yet?

• Reorder level

• Reorder quantity

• Minimum stock level

• Buffer Stock

The reliability of the supplier would be taken into account when considering reorder levels?

• True

• False

The price the supplier is charging would be taken into account when working out the reorder quantity?

• True

• False

What would be taken into account when considering a reorder quantity?

• Minimum Stock Level

• Maximum Stock Level

• Lead Time

• All of the above

Delivery time is the time taken from when the stock is ordered until it arrives.

• True

• False

What would be taken into account when considering a maximum stock level?

• Storage, Price and Delivery time

• Storage. Price and Minimum Stock level

• Storage, Price and Perishability