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WorksheetsInventory control
Total questions: 15
Worksheet time: 15mins
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
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
The expenses incurred to create and process an order to a supplier.
purchasing costs
ordering costs
stockout costs
carrying costs
This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, warehouse insurance and insurance of goods.
purchasing cost
ordering cost
stockout cost
carrying cost
Finished goods inventory is the amount of manufactured product in stock that is available for sale.
TRUE
FALSE
