Inventory Control Quiz

What is a drawback of Just-in-Time (JIT) inventory control?

• Higher storage costs

• Risk of obsolescence

• Requires reliable suppliers

• Ensures smooth operations

What is a benefit of having reliable suppliers?

• Increases downtime

• Ensures consistent delivery

• Raises production costs

• Reduces cash flow

Which factor is considered by businesses to improve brand image through ethical sourcing?

• Cost

• Location

• Ethical Standards

• Quality

What is a key reason for managing the supply chain effectively?

• To increase storage costs

• To ensure smooth operations

• To reduce supplier reliability

• To increase defect rates

What is one benefit of an efficient supply chain?

• Increases excess inventory

• Enhances a company's ability to deliver products on time

• Raises production costs

• Decreases customer demand

Which of the following is a challenge in managing global supply chains?

• Decreased transportation costs

• Simplified logistics

• Cultural and regulatory differences

• Reduced risk of disruptions

What is a key aspect of logistics?

• Increasing product prices

• Planning and controlling the movement of goods

• Reducing customer satisfaction

• Eliminating warehousing

How does effective logistics management contribute to cost reduction?

• By increasing warehousing costs

• By reducing transportation and handling costs

• By increasing delivery times

• By complicating supply chain processes

What is a value of effective logistics management?

• Increased fuel consumption

• Enhanced efficiency

• Higher resource usage

• Slower market delivery

How does effective supply chain management support lean production?

• By increasing excess inventory

• By reducing excess inventory

• By complicating logistics

• By raising production costs