INVENTORY MANAGEMENT ICE BREAKER

Which among the ff is an example of a raw materials?

• Car ready for delivery

• Smartphone

• Flour

• Maintenance and Repair Tools

This is an Inventory control technique wherein products are ordered only when needed

• ABC Analysis

• Economic Order Quantity

• FIFO

• Just-In-Time (JIT)

An Inventory control technique that is significant in inventory management because it prioritizes items by value

• ABC Analysis

• Just-In-Time (JIT)

• FIFO

• Economic Order Quantity

What do we call the costs that are incurred for storing unsold inventory

• Ordering Cost

• Holding Cost

• Demand Cost

• Annual cost

TRUE OR FALSE

No matter what size the order is, ordering costs will be incurred with every order; the more orders placed, the higher the ordering costs will be.

• TRUE

• FALSE

True or False:

The primary purpose of Safety Stock is to increase the company's profit margin on each unit sold.

• TRUE

• FALSE

If your supplier suddenly notifies you that the lead time for your parts has doubled, your Reorder Point (ROP) should stay the same as long as your daily sales haven't changed.

• TRUE

• FALSE

_______ POINT

this ensures that you have just enough inventory on hand to satisfy customer demand during the "lead time" period

CAPSLOCK

E_on___c _rd__ Q______y

the ideal quantity of units of company should purchase to meet demand while minimizing inventory costs such as holding costs, shortage costs and order costs

CAPSLOCK