Inventory and Service Procurement Quiz

Which of the following best defines inventory according to the Institute of Logistics and Transport?

• Goods purchased for resale only

• All goods and materials held by an organisation for sale or use

• Raw materials only

• Finished goods only

Which of the following is NOT a reason for keeping inventory?

• Reduce supplier failure risk

• Smooth seasonal demand

• Increase carrying costs deliberately

• Hedge against shortages

Which inventory classification includes maintenance, repair, and operating supplies?

• Raw material

• Finished goods

• Support inventory

• Primary inventory

The main aim of inventory management is to:

• Maximize stock levels

• Provide service levels at optimum cost

• Eliminate suppliers

• Increase lead times

Which technology requires no line of sight and allows bulk reading of inventory tags?

• Barcoding

• RFID

• Manual stocktaking

• Optical scanning

Which of the following is a key performance indicator (KPI) for inventory?

• Employee turnover

• Rate of stock turn

• Supplier reputation

• Customer satisfaction surveys

In manufacturing organisations, EOQ is influenced by:

• Market conditions

• Demand type (independent or dependent)

• Service level requirements

• All of the above

Which inventory control system is based on predetermined reorder levels?

• Push system

• Pull system

• Periodic review system

• Just-in-time system

Which of the following is a unique characteristic of services compared to goods?

• Services can be stored

• Services cannot be inspected easily before purchase

• Services can be resold

• Services are always tangible

Which factor makes service procurement more complex than goods procurement?

• Impracticability of storage

• Inspectability

• Variability in performance

• All of the above