Inventory Management Quiz

___________ refers to stocks of goods and materials that are maintained for many purposes, the most common being to satisfy normal demand patterns.

• Logistics

• Supply chain management

• Inventory

• Production

Holding high levels of inventory results in ___________ inventory carrying costs and ___________ stockout costs.

• high; high

• high; low

• low; high

• low; low

Holding low levels of inventory results in ___________ inventory carrying costs and ___________ stockout costs.

• high; high

• high; low

• low; high

• low; low

___________ stock refers to inventory that is needed to satisfy normal demand during the course of an order cycle.

• Base

• Speculative

• Pipeline

• Safety

___________ stock refers to inventory that is held in addition to cycle stock to guard against uncertainty in demand and/or lead time.

• Base

• Pipeline

• Speculative

• Buffer

Another name for safety stock is ___________ stock.

• base

• buffer

• cycle

• speculative

___________ stock refers to inventory that is en route between various nodes in a logistics system.

• Pipeline

• Safety

• Speculative

• Cycle

___________ stock refers to inventory that is held for several reasons, to include seasonal demand, projected price increases, and potential shortages of product.

• Base

• Safety

• Pipeline

• Speculative

___________ stock is carried to stimulate demand.

• Base

• Psychic

• Speculative

• Attractive

Inventory costs in the United States in the twenty-first century represent approximately ___________ of total logistics costs.

• one-fifth

• one-fourth

• one-third

• one-half