Module 1 - Mock test 1

Inventory partially completed/finished goods that are still in production are called

• Production inventories

• MRO Inventories

• In process inventories

• Finished goods inventories

Answer explanation

Subject 1,Chapter 4 - Inventory management

Inventory as safety stock to cater break downs/ uncertainties are called

• Transaction inventories

• Speculative Inventories

• In process inventories

• Precautionary inventories

-------------------- is guidelines concerning what to purchase/manufacture, when to take action and in what quantity.

• Warehouse policy

• Inventory policy

• marketing policy

• none of these

--------------------------------is the time elapsed between the release of a purchase order by a customer and the receipt of corresponding order by him

• Supply time

• Order cycle time

• reordering quantity

• Just in time

If 100 cases ordered and only 95 only sent with the available stock, the ----------- is 95%

• Order level

• Case fill rate

• EOQ

• Stocking rate