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INVENTORY MANAGEMENT QUIZ 2

Total questions: 45

Worksheet time: 28mins

Name
Class
Date
1.

The expense incurred by creating and processing purchase orders?

a)

Purchasing Costs

b)

Inventory Costs

c)

Holding Costs

d)

Ordering Costs

2.

Warehouse Costs, Utilities, Employee Salaries, and Inventory Costs relating to obsolescence.

a)

Holding Costs

b)

Purchasing Costs

c)

Ordering Costs

d)

Inventory Costs

3.

The most common approach to understanding how much item to order when stocks need replenishing is through ______________.

a)

EOQ or Economic Order Quantity

b)

Purchase Orders

c)

Ordering Costs

d)

Reorder Level

4.

CARRYING COSTS + ORDERING COSTS = __________

a)

Total Annual Costs

b)

Total Annual Consumption

c)

Rate of Demand

d)

Inventory Carrying Costs

5.

Solve for the TAC:

If Q = 100

CC = 7200

OC = 1250

a)

8450

b)

8640

c)

8560

d)

8340

6.

The most popular inventory classification. This technique classifies items using the item demand/usage value.

a)

RRS or XYZ

b)

SDE

c)

ABC

d)

FSN

7.

Constitutes the 60% to 70% of company’s total purchase expenditure and only constitute around 10 to 15% of the total number of items in stock.

a)

CLASS D ITEMS

b)

CLASS B ITEMS

c)

CLASS C ITEMS

d)

CLASS A ITEMS

8.

The goal of this analysis is to understand which parts have steady usage and which parts have unpredictable demand. It is a way to classify inventory items according to variability of their demand. It is also known as the RRS analysis

a)

GOLF ANALYSIS

b)

SDE ANALYSIS

c)

XYZ ANALYSIS

d)

FSN ANALYSIS

9.

It categorizes stock under three heads based on its importance and necessity for an organization for production or any of its other activities. Mainly used for spare parts identification.

a)

SDE

b)

VDE

c)

VED

d)

LED

10.

What does VED means?

a)

Vital, Essential, Desirable

b)

Valuable, Essential, Desirable

c)

Value, Easy, Difficult

d)

Vital, Easy, Difficult

11.

What are the MRP inputs?

a)

FORECASTED DEMAND AND CUSTOMER ORDERS

b)

OPERATIONAL CAPACITY AND MACHINE CONSTRAINTS

c)

INVENTORY LEVELS

d)

BILL OF MATERIALS

e)

ALL OF THE ABOVE

12.

It appears in a hierarchical format, with the highest level displaying the finished product and the bottom level showing individual components and materials.

a)

BOM

b)

DOM

c)

GOM

d)

LOM

13.

Refers to any inconsistencies between the actual quantity or type of physical inventory and what is on the recorded transaction.

a)

Inventory Transaction

b)

Inventory Records

c)

Inventory Accuracy

d)

Inventory Inaccuracy

14.

What are the types of transaction records?

a)

Manual Systems

b)

Warehouse Management Systems

c)

Computerized Systems

d)

All of the Above

15.

The most efficient way of identifying materials, components, assemblies and other items stocked by an organization

a)

Stock-Keeping Units

b)

Stock-calling units

c)

Scanning-Item Records

d)

Standard Inventory Coder

16.

Assigns a 6 to 10 digit code to each item. The first few digits usually indicate the classification to which the item belongs to. The subsequent digits indicate the subclass, and the number of the item from the hierarchy.

a)

Sequential System

b)

Mnemonic System

c)

Structural Code

d)

Structured System

17.

Element of an Item Identification Code

(a)  

18.

Elements of an Item Identification Code

(a)  

19.

Most companies struggle due to a deficiency in one or both of these, which leads to data elements like item descriptions or item codes prone to inconsistencies or errors.

a)

Inventory Data

b)

Inventory Record Database

c)

Master Data

d)

Item Description

20.

To verify the accuracy of stock records and to support the value of stock shown in the balance sheet by physical verification.

(a)  

21.

An objective of a warehouse manager

a)

Preserve the quality, value, and security of the stored items

b)

Maximize errors in dispatches

c)

Minimise the cost of warehouse operations

d)

Maximise the servicing of orders on time and in full

22.

The principles of a good warehouse layout are applicable to whatever items are stored. Inventory turnover can be improved with an (a)  

23.

Components of a warehouse

a)

DYNAMIC STORAGE

b)

STATIC STORAGE

c)

MHE PARKING

d)

STAGING AREA

e)

OFFICES

24.

Types of warehouse material flows

a)

J Layout

b)

I Layout

c)

T Layout

d)

U Layout

25.

Identify which type of warehouse this product should be stored.

a)

General Purpose Warehouse

b)

Special Purpose Warehouse

c)

Shed or Semi-covered Storage

d)

Open Storage Space

26.

Identify which type of warehouse this product should be stored.

a)

General Purpose Warehouse

b)

Special Purpose Warehouse

c)

Shed or Semi-covered Storage

d)

Open Storage Space

27.

Identify which type of warehouse this product should be stored.

a)

General Purpose Warehouse

b)

Special Purpose Warehouse

c)

Shed or Semi-covered Storage

d)

Open Storage Space

28.

Identify which type of warehouse this product should be stored.

a)

General Purpose Warehouse

b)

Special Purpose Warehouse

c)

Shed or Semi-covered Storage

d)

Open Storage Space

29.

Identify which type of warehouse this product should be stored.

a)

General Purpose Warehouse

b)

Special Purpose Warehouse

c)

Shed or Semi-covered Storage

d)

Open Storage Space

30.

It is an inevitable part of every manufacturing plant

a)

Transport Equipment

b)

Storage Systems

c)

Downtime

d)

Materials Handling

31.

What type of equipment is this?

a)

Transport Equipment

b)

Positioning Equipment

c)

Storage Equipment

d)

Load Formation Equipment

32.

What type of equipment is this?

a)

Transport Equipment

b)

Storage Equipment

c)

Load Formation Equipment

d)

Positioning Equipment

33.

What type of equipment is this?

a)

Transport Equipment

b)

Load Formation Equipment

c)

Positioning Equipment

d)

Storage Equipment

34.

What type of equipment is this?

a)

Transport Equipment

b)

Load Formation Equipment

c)

Positioning Equipment

d)

Storage Equipment

35.

What type of equipment is this?

a)

Transport Equipment

b)

Positioning Equipment

c)

Storage Equipment

d)

Load Formation Equipment

36.

Programs in warehousing to prevent any catastrophic loss of valuable assets and items by proper inspections, control of operations and processes, maintenance, good housekeeping, and elimination of unsafe practices.

(a)  

37.

A principle used and followed in designing an effective and efficient warehouse layout

a)

ACT Approach

b)

Fast Approach

c)

Fact Principle

d)

Fish Method

38.

By arranging pallet racks in wide rows and stocking items with regard to their velocity, the interference can be significantly lowered. This will enable you to build quick-pick areas.

a)

Flow

b)

Accessibility

c)

Space

d)

Throughput

39.

Everything should fit together precisely so you can make the most of your finite space.

a)

Space

b)

Throughput

c)

Flow

d)

Accessibility

40.

The prediction, projection, or estimation of the occurrences of uncertain future events or level of activity based on past behaviors, experiences, and events.

(a)  

41.

This is a structured technique to reach a consensus with a panel of experts without gathering them in a single location.

(a)  

42.

Simplest forecasting method setting the upcoming forecast equal to the most recent period’s demand

(a)  

43.

Using the simple moving average formula, calculate the forecast for the month of JUNE.

January: 5 units

February: 10 units

March: 9 units

April: 12 units

May: 13 units



(a)  

44.

Demand patterns that repeat themselves every year

(a)  

45.

First name of your trainer

(a)