Inventory Management Concepts and Methods

The video tutorial discusses the importance of inventory management for business success and introduces eight main types of inventory control: FIFO, LIFO, Average Cost, ABC Curve, Inventory Turn, Dropshipping, Specific Price, and Just In Time. Each method is explained with its applications and benefits. The video encourages viewers to subscribe for more business tips and offers additional resources for deeper understanding.

Why is good inventory management critical for business success?

• It allows the company to expand globally.

• It helps in reducing the number of products.

• It ensures the company does not face big losses.

• It helps in increasing the number of employees.

What does FIFO stand for in inventory management?

• Last In, First Out

• Last In, Last Out

• First In, Last Out

• First In, First Out

Which type of inventory control is not recommended for perishable items?

• LIFO

• ABC Curve

• Average Cost

• FIFO

What is another name for the Average Cost method?

• Fixed Cost

• Variable Cost

• Weighted Moving Average

• Standard Cost

In the ABC Curve method, what does the letter 'A' represent?

• Highest value or quantity

• Average value or quantity

• Middle value or quantity

• Lowest value or quantity

What does the Inventory Turn model help analyze?

• The number of employees in a company

• The performance of inventory

• The total sales of a company

• The number of suppliers

What is dropshipping?

• A method where the reseller only markets products

• A method where the reseller keeps products in stock

• A method where the reseller makes sales without keeping products in stock

• A method where the reseller manufactures products

Which type of inventory control is used for products with more expressive values?

• Just in Time

• Specific Price

• LIFO

• FIFO

What does the Just in Time methodology focus on?

• Producing and buying in bulk

• Meeting customer demands at the right time

• Keeping a large stock of products

• Increasing the number of suppliers

What is the main benefit of the Just in Time method?

• It decreases the efficiency of the company.

• It increases the production time.

• It reduces or eliminates the need to have a stock.

• It increases the number of products in stock.