Inventory Management Quiz

Sally drives a truck that transports Nike shoes from the production plant to retail stores. What are the goods on the truck considered?

• transit inventory

• work-in-process inventory

• maintenance and repair inventory

• safety inventory

Which method of merchandise checking is used for products such as furniture, vases, and paintings?

• blind

• direct

• quality

• spot

________ changes in response to the sales, estimates, orders and stocking patterns.

• market demand

• raw materials

• price increases

• production plan

A business orders 10% more widgets than it needs because the supply of and the demand for widgets have been difficult to forecast in recent months. Which type of inventory is the business using?

• buffer

• perpetual

• customary

• transit

Market demand and supplies are _______ depending upon various factors like seasons; festivals etc and past sales data help companies to anticipate a huge surge of demand in the market well in advance.

• consistent

• unreliable

• unpredictable

• seasonal

What are employees who are specially trained to inspect and record newly arrived merchandise called?

• buyers

• accountants

• managers

• receivers

Which type of inventory has a function in the input process?

• paint supplies

• finished goods

• defective items

• packing materials

Why would an organization hold finished goods inventory?

• to meet variation in production demand

• to look for hidden problems

• to execute production strategy needs

• to hide quality issues

What is just-in-time inventory?

• A method of managing inventory that keeps a minimal amount of raw materials on hand to meet production needs.

• A balance of inventory holdings or carrying costs incurred from ordering or setting up supplies for the customers.

• Inventory held on hand that is over and above what is currently needed to meet demand.

• Items that are used to support and maintain the production process and its infrastructure.

All of these are possible choices for the location of their inventory, except for:

• off-site

• on-site

• drop ship

• Somewhere no one know