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WorksheetsRetail Management Midterm Exam - 3
Total questions: 15
Worksheet time: 8mins
What does WIP inventory consist of?
Partially finished products awaiting further processing
Finished products ready for distribution
Unused inventory stored in warehouses
Raw materials for production
What does the term 'Lead Time' refer to in inventory management?
Time spent on inventory counting
Time needed to manufacture a product
Time taken to sell a product
Time interval between ordering and receiving the order
What is the purpose of ABC Analysis in inventory management?
To determine lead time for items
To calculate average daily usage
To track inventory movement
To classify items based on values
What is the main objective of Inventory Management?
Maximize total inventory cost
Minimize customer service levels
Minimize, if not eliminate wastage
Increase holding costs
What does the EOQ Model help determine in inventory management?
Average cycle inventory
Ordering cost
Reorder point
Safety stock level
What is the purpose of V.E.D Analysis in inventory management?
To calculate stock factor per product
To classify items based on critical values and shortage cost
To evaluate supply chain reliability
To determine average daily usage
What does the term 'Stockouts' refer to in inventory management?
Low reorder point levels
High stock turnover rate
Excess inventory levels
Inability to satisfy demand for an item
What is the formula to calculate Stock Factor Approach per Product?
SFp = Q + TSLE
SFp = Q - TSLE
SFp = Q /TSLE
SFp = Q x TSLE
What is the main purpose of Setting Up Cost in inventory management?
To calculate reorder point
To evaluate costs associated with ordering inventory
To track inventory movement
To determine lead time
What is the significance of Finished Goods in inventory management?
Extra stocks added to forecast stock
Partially finished products awaiting further processing
Completed products ready for distribution or sale
Expenses associated with carrying inventory
What is the main goal of Inventory Management?
Increase wastage
Minimize total inventory cost
Disrupt store operations
Maximize customer service levels
What does the term 'Buffer' refer to in inventory management?
Extra stocks added to forecast stock
Time interval between ordering and receiving the order
Expenses associated with carrying inventory
Costs incurred in placing purchase orders
What is the purpose of S.D.E Analysis in inventory management?
To calculate average daily usage
Classification based on lead time/availability
To determine reorder point
To evaluate supply chain reliability
What is the formula to calculate Stock Factor Approach per Raw Materials?
SFrm= Quantity Sold/ Yield
SFrm= Quantity Sold + Yield
SFrm= Quantity Sold x Yield
SFrm= Quantity Sold - Yield
What is the main concept behind the Five Phases of Inventory Management?
To track inventory movement
To plan, control, and monitor inventories
To calculate reorder point
To determine lead time
