Tutorial 1 Inventory and Warehousing Management

What is the primary goal of safety stock?

• To prevent stockouts

• To maximize storage space

• To reduce ordering costs

• To increase lead time

What does EOQ stand for in inventory management?

• Economic Order Quantity

• Efficient Ordering Quality

• Excess Order Quantity

• Essential Operational Quality

Which of the following is NOT a common inventory control technique?

• Material Requirements Planning (MRP)

• Just-In-Time (JIT)

• Economic Production Quantity (EPQ)

• Randomized Stocking

In inventory management, what does the term "Lead Time" refer to?

• The time it takes to place an order

• The time it takes for goods to be manufactured

• The time it takes for goods to arrive after an order is placed

• The time it takes to sell inventory

What is the term for the process of tracking and managing the movement of goods into and out of a warehouse?

• Inventory optimization

• Warehousing logistics

• Supply chain management

• Distribution control

What is the main objective of inventory turnover ratio?

• To increase holding costs

• To maximize stockpiling

• To improve efficiency in inventory management

• To decrease cash flow

Which inventory costing method assumes that the cost of goods sold is based on the cost of the most recent inventory purchased?

• FIFO (First In, First Out)

• LIFO (Last In, First Out)

• Weighted Average

• Specific Identification

What does the term "Just-In-Time (JIT)" inventory management refer to?

• Keeping a surplus of inventory

• Ordering materials far in advance

• Minimizing inventory levels to match demand

• Stockpiling inventory for future use

Which of the following is NOT a key function of warehousing management?

• Inventory control

• Order fulfillment

• Customer relationship management

• Space utilization

What is the term for the cost associated with holding inventory over a period of time?

• Ordering cost

• Holding cost

• Setup cost

• Shortage cost