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WorksheetsInventory Management Worksheet
Total questions: 18
Worksheet time: 9mins
What is Inventory Management?
Controlling employees’ working hours
Planning and controlling inventories to meet competitive priorities
Ensuring maximum production speed
Managing only finished goods
What is Inventory?
Only raw materials
Items returned from customers
Stock of materials used to satisfy demand
Extra production capacity
Which of the following is a component of inventory holding cost?
Delivery discount
Cost of capital
Labor wages
Customer satisfaction score
Shrinkage includes all except:
Pilferage
Deterioration
Obsolescence
Machine breakdown
Ordering cost refers to:
Cost of storing inventory
Cost of placing an order with a supplier
Cost of shrinking inventory
Cost of quality inspections
Cycle inventory equals:
Q
Q × L
Q/2
D/Q
Pipeline inventory equals:
D/L
d × L
L/d
Q/d
Safety stock is used to:
Reduce order quantity
Protect against demand or lead-time uncertainty
Reduce average demand
Increase storage capacity
ABC analysis classifies items based on:
Weight
Size
Dollar usage
Supplier priority
EOQ is the order quantity that:
Maximizes total cost
Minimizes total annual holding and ordering cost
EOQ formula is:
Q = D/L
EOQ = √(2DS/H)
EOQ = D x H
EOQ = S/(DH)
Reorder Point (when demand and lead time constant) equals:
Q x H
d/L
d x L
H x S
Inventory Position (IP) equals:
On-hand x Demand
On-hand + Scheduled receipts – Backorders
Order quantity x Demand
Safety stock + EOQ
Continuous Review System (Q System) triggers a new order when:
A fixed time interval passes
Inventory drops to reorder point
EOQ increases
Storage is full
Service level represents:
% of defective items
Probability of not stocking out
Number of suppliers used
Amount of safety stock
Protection interval in P-system equals:
L – P
P + L
P × L
L/P
A SKU is:
Supplier knowledge unit
Serial key user
Stock-keeping unit
Standard key usage
Which is NOT an operational inventory type?
Cycle inventory
Safety stock
Anticipation inventory
Obsolescence inventory
