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WorksheetsInventory Management
Total questions: 25
Worksheet time: 14mins
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
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
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
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
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
Finished goods inventory is the amount of manufactured product in stock that is available for sale.
TRUE
FALSE
What is the other name for inventory?
Stock keeping unit
Stock on hand
Stock in place
Stock to buy
What is the name of method under discount quantity?
Holding cost same, Holding cost different
Holding cost similar, Holding cost rare
Holding cost constant, Holding cost not constant
Holding cost flexible, Holding cost permanent
Which one of the example below is not include under types of inventory?
raw materials
Maintenance , Repair , Operating
Work in progress
Dependant demand
What is ABC system?
A method of dividing on hand inventory into 3 classifications,
A method of segregate the inventory into 3 classifications.
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
This refers to items that the manufacturer has purchased or produced to use in manufacturing a product.
raw material inventory
Work in process inventory
Finished good inventory
