Inventory Quiz

Which type of inventory deals with demand and supply uncertainties?

• Safety stocks

• Cycle stocks

• Time/In-Transit stocks

• Anticipatory stocks

What type of inventory is associated with goods in motion during transportation?

• Cycle stocks

• Time/In-Transit stocks

• Anticipatory stocks

• Work-in-Process stocks

What type of inventory is related to goods in motion during transportation?

• Cycle stocks

• Time/In-Transit stocks

• Seasonal stocks

• Anticipatory stocks

What is a potential conflict between marketing and manufacturing?

• Marketing wants less inventory, manufacturing wants more

• Marketing wants more inventory, manufacturing wants less

• Both want the same inventory levels

• Neither is concerned with inventory

What does Inventory Service Cost include?

• Handling costs

• Insurance and taxes

• Capital costs

• Risk of value decline

What is the main goal of JIT systems?

• Increase inventory

• Eliminate waste

• Lengthen lead times

• Increase safety stock

How does JIT view safety stock?

• Necessary

• Optional

• No

• Yes

What does MRP specifically deal with?

• Supplying finished products

• Supplying materials and component parts

• Supplying customer services

• Supplying financial resources

Which of the following is NOT a goal of the MRP system?

• Ensure the availability of materials

• Maintain high inventory levels

• Plan manufacturing activities

• Support service objectives