Font size
WorksheetsChapter 3: Inventory Management
Total questions: 20
Worksheet time: 10mins
The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable.
True
False
The objective of inventory management is to minimize holding costs
True
False
When using EOQ ordering, the order quantity must be computed in every order cycle
True
False
The purchase-order lead time is the ________.
time between placing an order and its delivery
time between receiving a customer order and producing the products
time between receiving a customer order and delivering the items
time required to correct errors in the defective products
The ideal order quantity a company should purchase for its inventory given a cost set of production, demand rate, and other variables is known as:
Reorder point
Economic order quantity
Anticipation stock
Inventory control
demand e.g. Christmas sale
shortages or fluctuations in demand
Inventory is another word for:
Stock
Finance
Staff
Managers
Identify the costs and risks of OVERstocking:
Customers will not be able to buy what they want
Staff will be made redundant
Higher storage costs
Items could deteriorate with age
The maximum order level is:
The amount of inventory that the business should not fall below
The amount of inventory that the business should not rise above
The time that it will take for the stock to be delivered to the business
The maximum amount of stock that the customer is allowed to order
Just-in-time inventory management is when:
Customers have a short period of time to order their stock
Stock is ordered just in time for when it is required
Stock is delivered quickly
The business does not have to order any stock
Which one of the statement below is true? Function of Inventory.
To slow production requirement
To take advantages of EOQ
To hedge against price hike
To fulfill production from supplier
Which one of the example below is not include under types of inventory?
raw materials
Maintenance , Repair , Operating
Work in progress
Dependant demand
Which of the following verbs IS NOT related to logistics?
(to) dispatch
(to) consolidate
(to) purchase
(to) howl
Below are the importance of inventory control, except;
How to maximize costs involved, which could directly increase production
How much inventory to be ordered to replace sold inventory
When to order inventory to prevent excess or deficiency in storage
What type of inventory is suitable for the production process
Total storage cost = ?
average inventory x ordering cost per unit
average cost x storage cost per unit
storage cost + carrying cost
number of times ordered x cost per order
What is EOQ?
Economics Order Quality
Economics Output Order
Economics Order Quantity
Ergonomics Order Quantity
Reorder level determines how low inventory should be before reordering occurs.
TRUE
FALSE
a product
Finished goods inventory is the amount of manufactured product in stock that is available for sale.
TRUE
FALSE
