Mastering Facilities and Inventory

What is the primary goal of inventory management?

• To minimize storage space only.

• To increase production costs.

• To balance supply and demand efficiently.

• To eliminate all inventory completely.

Name one technique used in inventory management.

• Just-In-Time (JIT) inventory system

• First-In-First-Out (FIFO) method

• Batch Processing system

• Economic Order Quantity (EOQ) model

What is the purpose of facility layout planning?

• To increase the number of resources used.

• To create a random arrangement of equipment.

• To optimize the arrangement of resources for efficiency and productivity.

• To minimize the space used in the facility.

How does supply chain optimization benefit a business?

• Increases production time

• Decreases product quality

• Limits market reach

• Supply chain optimization benefits a business by reducing costs, improving efficiency, and enhancing customer satisfaction.

What is an asset tracking system?

• A method for organizing digital files.

• An asset tracking system is a technology solution for monitoring and managing physical assets in real-time.

• A system for tracking employee performance.

• A software for managing financial transactions.

List one advantage of effective warehouse operations management.

• Longer delivery times

• Increased shipping costs

• Improved inventory accuracy

• Higher employee turnover

What is just-in-time (JIT) inventory management?

• An approach that eliminates the need for any inventory management.

• A strategy that focuses on long-term storage of goods.

• A method to increase inventory levels for bulk purchasing.

• Just-in-time (JIT) inventory management is a strategy that reduces inventory levels by ordering goods only as needed.

Describe the role of technology in inventory management.

• Technology is only useful for marketing purposes.

• Technology plays a crucial role in automating and optimizing inventory management processes.

• Technology complicates inventory management processes.

• Technology has no impact on inventory management.

What factors should be considered in facility layout planning?

• Employee satisfaction surveys

• Space requirements, workflow efficiency, equipment placement, safety regulations, flexibility, and accessibility.

• Cost of utilities

• Marketing strategies

How can inventory turnover be improved?

• Limit sales promotions and discounts.

• Reduce the variety of products offered.

• Increase product prices without changing stock levels.

• Optimize stock levels and enhance demand forecasting.