
Working Capital Quiz-Part 2
Authored by Dipendra Bhusal
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University
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10 questions
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1.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is the optimal quantity of stock to order that minimizes the total inventory costs?
EOQ (Economic Order Quantity)
ABC Analysis
Just-in-Time (JIT) Delivery
FIFO/LIFO Valuation
2.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What does ABC analysis classify inventory into?
A: High-value, B: Medium-value, C: Low-value
A: Low-value, B: Medium-value, C: High-value
A: Medium-value, B: High-value, C: Low-value
A: High-value, B: Low-value, C: Medium-value
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is the formula for Re-order Point (ROP)?
(Average daily usage × Lead time) + Safety stock
Average daily usage + Lead time + Safety stock
Average daily usage × Lead time - Safety stock
Lead time / Average daily usage + Safety stock
4.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is Safety Stock?
Extra inventory kept to prevent stockouts
Inventory that is sold first
Inventory that is ordered last
Inventory that is not used
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is the primary purpose of Just-in-Time (JIT) inventory management?
To reduce inventory holding costs
To increase production speed
To enhance product quality
To simplify supply chain logistics
6.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Which inventory valuation method assumes that the oldest inventory items are sold first?
Weighted Average Cost
LIFO (Last-In, First-Out)
FIFO (First-In, First-Out)
Specific Identification
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Which of the following is a key characteristic of a Just-in-Time (JIT) inventory system?
Large stockpiles of inventory
Frequent deliveries of small quantities
Long lead times for orders
Minimal supplier interaction
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