Understanding Inventory Control Basics

What type of inventory consists of materials used to feed productions and create products?

• Work-in-Process (WIP)

• Raw materials

• Finished Goods

• Reverse Inventory

Which inventory management method is most commonly used in practice?

• Last-in-First-out (LIFO)

• First-in-First-out (FIFO)

• Just-in-Time (JIT)

• ABC Inventory

In the ABC Inventory classification, which category represents the fastest moving and most expensive goods?

• A

• B

• C

• D

Which of the following is a drawback of the Just-in-Time (JIT) inventory system?

• Decreased traffic flow

• Less frequent orders

• Increased traffic flow

• Works for everyone

What is the primary focus of inventory management at the aggregate level?

• Individual item movement

• Total inventory movement

• Manual counting

• Automated counting

Which inventory count type involves counting the entire inventory?

• Cycle Count

• Random Count

• Wall-to-Wall

• Manual Count

What is the main purpose of Material Requirements Planning in inventory management?

• Scheduled ordering

• Manual counting

• Automatic ordering based on future needs

• Fixed order quantity

Which of the following is NOT one of the "Rights" in inventory management?

• The right amount

• The right material

• The right supplier

• The right time

What type of inventory is returned to the company from the customer due to damage or other reasons?

• Finished Goods

• Work-in-Process (WIP)

• Reverse Inventory

• Raw materials

In a cycle count based on ABC priority, how many times per year are B items typically counted?

• 2 times

• 4 times

• 6 times

• 8 times