Inventory Planning & Control Quiz

Which of the following is NOT a component of ordering costs?

• Insurance costs

• Receipt of material

• Search for suppliers

• Price negotiation

What is a consequence of shortage costs?

• Customer dissatisfaction

• Reduced ordering costs

• Increased carrying costs

• Higher purchase costs

What does EOQ stand for in inventory control?

• Effective Order Quantity

• Economic Order Quantity

• Estimated Order Quantity

• Essential Order Quantity

What is the relationship between carrying costs and ordering costs?

• They are unrelated

• They are the same

• They are directly proportional

• They are fundamentally opposing

Which classification scheme is based on consumption value?

• XYZ Classification

• VED Classification

• ABC Classification

• FSN Classification

In the XYZ classification, which class represents high unit cost items?

• W Class

• Z Class

• Y Class

• X Class

What does the FSN classification focus on?

• Criticality of items

• Movement of inventory

• Unit cost of items

• Consumption value

Which of the following is a type of shortage cost?

• Cost of rush purchases

• Cost of obsolescence

• Cost of insurance

• Cost of warehousing

What does the VED classification categorize items based on?

• Supplier type

• Cost

• Criticality

• Movement

Which of the following is NOT a carrying cost?

• Wastage costs

• Purchase costs

• Administrative costs

• Insurance costs