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WorksheetsThe Art of Inventory Management | SCT
Total questions: 10
Worksheet time: 5mins
Which of the following best describes the EOQ (Economic Order Quantity)?
The amount of inventory to maintain as safety stock
The number of units to be produced per cycle
The ideal order quantity that minimizes total ordering and holding costs
The total amount of inventory carried annually
In the ABC classification system, "A" items are typically:
Low-value, high-volume items
High-value, low-volume items
Items with the highest stock quantity
Items with irregular demand patterns
Which of the following is a key benefit of using cycle counting?
Requires full shutdown of warehouse
Identifies discrepancies without halting operations
Eliminates the need for physical inventory entirely
Ensures all items are counted every day
Reorder Point (ROP) is calculated using which two key variables?
Safety stock and EOQ
Lead time and average daily demand
Holding cost and demand variability
Inventory turnover and order cost
Which inventory control method is most appropriate for perishable items?
LIFO
JIT
FEFO
Min-Max
What does a high inventory turnover ratio generally indicate?
Stockouts are frequent
Inventory is obsolete
Inventory is being sold or used efficiently
Excess safety stock is maintained
Which technology allows inventory to be scanned without line-of-sight?
Barcode
RFID
QR Code
Manual tagging
Fill rate measures:
Stock level compared to maximum capacity
Percentage of customer orders fulfilled on the first attempt
Number of replenishment cycles completed
Inventory lost due to shrinkage
In inventory management, shrinkage refers to:
Seasonal demand reduction
Increase in safety stock
Loss due to theft, damage, or error
Storage cost reductions
Which of the following best supports real-time inventory visibility?
Periodic stock review
Manual inventory log sheets
Physical inventory count
Integrated WMS and scanning tools
