Inventory Management quizz

Inventory that is kept to fulfill regular demand is called ______ stock.
Example: A grocery store maintaining a steady supply of milk and bread to meet daily customer purchases.

To balance production levels and address fluctuating demand, companies use ______ inventory.
Example: A car manufacturer maintaining a steady inventory of steel parts to avoid production delays during periods of uneven supplier delivery schedules.

______ stock is maintained as a buffer against unexpected demand or supply chain disruptions.
Example: An electronics retailer keeps extra laptops in stock during the holiday season in case suppliers delay shipments.

Inventory that is in transit between locations, such as warehouses or stores, is referred to as ______ inventory.
Example: A clothing retailer’s shipment of new winter jackets on a truck traveling from the manufacturer to a distribution center.

When a company holds inventory to protect against potential price changes or market risks, it is called ______ inventory.
Example: A coffee distributor buying and storing extra coffee beans due to forecasts of a poor harvest that may drive prices up.

To prepare for a predictable increase in demand, companies often maintain ______ inventory.
Example: A toy manufacturer increasing production and stock of popular toys in preparation for the Christmas shopping season.

The cost and value of inventory decrease as materials move down the supply chain.

• True

• False

  The flexibility of inventory increases as materials move down the supply chain.

• True

• False

What is the primary goal of the Just-in-Time (JIT) inventory management system?

• A. To stockpile inventory to meet unexpected demand

• B. To reduce inventory waste by producing and delivering goods only when needed

• C. To increase production speed regardless of demand

• 
  D. To focus on long-term storage of raw materials

Which of the following best describes the Kanban system in inventory management?

• A. A forecasting method that predicts future inventory needs based on trends

• B. A visual scheduling tool used to signal when to start or stop production based on demand

• C. A method for storing excess inventory in multiple locations

• D. A process for automating all aspects of supply chain management