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BASIC INVENTORY PLANNING MANAGEMENT

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

It measures how long it takes a company on average to complete a customer order. It is the time gap between two consecutive deliveries; the time required to complete one delivery after another has been completed.

a)

Order Cycle Time

b)

Inventory Turnover

c)

Supplier Quality Index

d)

Cost of Carrying Inventory

2.

The following are the benefits of Inventory KPIs, except:

a)

Improve Operational & Employee Efficiency

b)

Foster a Financial-viable Business

c)

Increase Sales & Revenue

d)

Provides performance feedback

3.

These are metrics that help businesses collect the data they need to effectively manage their inventory and evaluate its impact on their business performance, sales, turnover, overall profitability, and more.

a)

Warehouse Productivity Measures

b)

Inventory Measures

c)

Inventory Management KPIs

d)

Inventory Management

4.

It quantifies how effectively an organization delivers complete, accurate and damage-free orders to customers on time.

a)

Inventory Performance

b)

Order Pick, Pack and Ship Accuracy

c)

Cost of Carrying Inventory

d)

Perfect Order performance

5.

With ______, you’re less likely to order inventory beyond market demand. Further, this Inventory KPI can also clue you in on when to order more stock than normal, so you never miss a chance for growth.

a)

Supplier Quality Index

b)

Inventory Turnover

c)

Demand Forecast

d)

Gross Contribution Margin

6.

There are two approaches used in calculating inventory turnover, the first is by dividing sales by average inventory for a specific period. The second is to divide the cost of goods sold (COGS) by average inventory for a specific period.

a)

Both statements are true

b)

Both statements are false

c)

First statement is true, second statement is false

d)

First statement is false, second statement is true

7.

This measures how often a manufacturer’s inventory is sold, replaced or turned over in a specific period.

a)

Carrying Cost of Inventory

b)

Inventory Turnover

c)

Supplier Quality Index

d)

Key Performance Index

8.

Which among the following is an example of Inventory KPI benefits?

a)

Customer Satisfaction

b)

Increase in Sales and Revenue

c)

Efficient warehousing

d)

All of the above

9.

Stock management metrics must reflect your company’s _____ and reinforce contributions to those goals.

a)

Dashboard

b)

Strategic Objectives

c)

Demand forecasting

d)

Competition

10.

It is a measure of your customer’s overall satisfaction with your services, products, and company. This includes the consistency of your company’s products with customer orders, order-to-delivery time, customer service, and more.

a)

Demand Forecast Accuracy

b)

Perfect Order Performance

c)

Customer Satisfaction Levels

d)

Fill Rate Effectiveness as a Percentage of All Order