Warehouse Management and Material Planning Quiz

Which of the following represent common stock statuses?

• Temporary location

• In transit

• Blocked

• Unconfirmed

• Fast-moved item

A storage type is a division of a warehouse based on the characteristics of the

• Weight, width, and type

• Dimensions and profitability.

• Space, materials, and activity.

• Price, space, and type.

• Usage, price, and dimensions.

Inventory management keeps track of the quantity of materials in storage location, but it cannot determine their exact location.

• 1. True

• 1. False

MRP is defined at the plant level.

• 1. True

• 1. False

The MRP list, unlike the stock/requirements list, highlights changes to MRP elements that have occurred since MRP was executed.

• 1. True 

• 1. False

When a company transfers part of the materials in stock from one distribution center to another, this scenario is known as stock-out.

• 1. True

• False

Period lot-sizing procedures combine the requirements from multiple time periods, such as days or weeks, into one lot.

• 1. True

• False

The main objective of material planning is

• 1. To minimize the expenses for storing excess inventory.

• 1. To balance the demand for materials with the supply.

• 1. To shorten the duration of the procurement cycle.

• 2. To eliminate excess inventory.

• 1. To prevent lost sales.

MRP uses requirements to generate the final procurement proposals

• 1. True

• False

In make-to-stock strategy the production of the finished goods and any needed semifinished goods is triggered by a sales order.

• 1. True

• 1. False