Inventory Management Quiz

What is inventory?

• Employee list

• Equipment used in production

• Goods and materials available for sale or use

• Company financial assets

What is the main objective of inventory management?

• Increase product variety

• Minimize inventory costs while meeting customer demand

• Maximize storage space

• Reduce workforce

Which inventory method assumes the oldest items are sold first?

• LIFO

• FIFO

• JIT

• EOQ

What does the term "stockout" mean in inventory management?

• Excess inventory

• Running out of stock

• Overstock

• Delayed orders

What is "economic order quantity" (EOQ)?

• The highest number of products that can be ordered

• The optimal order quantity that minimizes total inventory costs

• The quantity of defective items

• The lead time for product delivery

What is a purchase requisition?

• A request for payment

• A request to purchase materials or services

• A demand forecast

• A shipment confirmation

Who is typically responsible for approving a requisition request?

• The warehouse manager

• The accounting department

• The procurement or purchasing department

• The marketing team

What is the purpose of requisition planning?

• To track employee attendance

• To plan and manage the need for goods or services

• To increase production speed

• To manage shipping logistics

Which of the following factors should be considered in requisition planning?

• Supplier performance

• Inventory levels

• Lead times

• All of the above

What is a standing requisition?

• A one-time purchase request

• A requisition that covers multiple orders over a period

• An urgent requisition

• A returned order