Ch. 3 Inventory Management 20252 Quiz

How does inventory management help in achieving economies of scale?

• By increasing the number of suppliers

• By reducing the quality of products

• By allowing bulk purchases at a discount

• By expanding the store size

What is the purpose of ABC Analysis in inventory management?

• To categorize inventory based on importance

• To increase production speed

• To enhance customer satisfaction

• To reduce employee workload

Which of the following is NOT a part of inventory management?

• Ordering inventory

• Storing inventory

• Marketing inventory

• Selling inventory

Which cost is associated with maintaining a small inventory?

• Improved customer service

• Lower storage costs

• Faster deliveries

• Better equipment utilization

During which stage are shipping and customs documents prepared?

• Order Placement

• Order Processing

• Order Preparation

• Order Shipment

Why might a warehouse keep seasonal stock?

• To meet current demand

• To prepare for unexpected events

• To sell at a higher price later

• To meet holiday demand

What is the primary purpose of the EOQ model?

• To increase production speed.

• To determine the best reorder point and quantity.

• To reduce employee workload.

• To maximize storage space.

What is one of the main purposes of inventory management?

• To increase the number of employees

• To keep the right amount of stock

• To reduce the quality of products

• To expand the physical store size

Which type of stock is kept in anticipation of price increases?

• Working Stock

• Seasonal Stock

• Speculative Stock

• Dead Stock

Which of the following is a benefit of a large inventory?

• Lower capital costs

• Reduced ordering and setup costs

• Increased shrinkage

• Higher taxes