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Inventory Management

Total questions: 15

Worksheet time: 3mins

Name
Class
Date
1.

What is inventory?

a)

Stock Items

b)

Material Resource

c)

Finished Goods

d)

Raw Materials

e)

All of the Above

2.

Inventory management is managing and optimizing the accumulation of material resources so that the business organization can satisfy the customer demands.

a)

True

b)

False

3.

What type of inventory is this?

a)

MRO

b)

RAW MATERIAL

c)

WORK IN PROGRESS

d)

FINISHED GOOD

4.

What type of inventory is this?

a)

FINISHED GOOD

b)

RAW MATERIAL

c)

MRO

d)

WORK IN PROGRESS

5.

What type of inventory is this?

a)

FINISHED GOOD

b)

MRO

c)

WORK IN PROGRESS

d)

RAW MATERIAL

6.

What type of inventory is this?

a)

RAW MATERIAL

b)

FINISHED GOOD

c)

MRO

d)

WORK IN PROGRESS

7.

What type of inventory is this?

a)

WORK IN PROGRESS

b)

MRO

c)

FINISHED GOOD

d)

RAW MATERIAL

8.

What type of inventory is this?

a)

MRO

b)

FINISHED GOODS

c)

WORK IN PROGRESS

d)

RAW MATERIAL

9.

What type of inventory is this?

a)

FINISHED GOODS

b)

MRO

c)

WORK IN PROGRESS

d)

RAW MATERIAL

10.

What type of inventory is this?

a)

MRO

b)

WORK IN PROGRESS

c)

RAW MATERIAL

d)

FINISHED GOOD

11.

FILL IN THE BLANKS:

Minimizing inventory holding costs while maintaining ________, _______, and ________ high.

a)

CUSTOMER ORDERS, PRODUCT VALUE, QUALITY

b)

PRODUCTION OUTPUT, QUALITY, CUSTOMER SERVICE

c)

INTEGRITY, SERVICES, EMPLOYEE MORALE

d)

PRODUCTION WIP, CUSTOMER SATISFACTION, STANDARD

12.

What are the financial implications of holding inventory?

a)

Money Costs, Personnel Costs, Building Costs, Administrative Costs

b)

Storage Costs, Capital Costs, Services Costs, Theft Insurance

c)

Opportunity Costs, Storage Costs, Services Costs, Inventory Costs

d)

Opportunity Costs, Storage Costs, Services Costs, Obsolescence Costs

13.

A small change in demand, results in a demand distortion that travels upstream in the supply chain

a)

Bull-whip or the Forrester Effect

b)

Push and Pull Method

c)

Water Tank Analogy

d)

Economic Order Quantity

14.

What is not a part of the warehouse operations?

a)

Producing

b)

Sourcing

c)

Delivering

d)

Ordering

e)

All of the above

15.

Safety stocks are the accumulation of product or items in the event of a reduced customer demand.

a)

TRUE

b)

FALSE