Common Learning Block 4 Practice Questions

Question 1

____________________ is defined as products that are held and that will be used, at some point, for manufacturing products, completing products, selling to customers, or performing daily operations.

Answer 1

Inventory

Question 2

Inventory management achieves to balance the of risk between:

Answer 2

Stockouts and excess inventory

Question 3

Once a product is completely assembled, the cost of the parts used plus the costs to manufacture the products are defined as the:

Answer 3

Total costs

Question 4

The process for suppliers to monitor and replenish inventory on an as-needed basis is called:

Answer 4

Supplier-managed inventory (SMI)

Question 5

All of the following are one of the four basic types of inventory, except:

Answer 5

Customer service

Question 6

An obsolete part can be defined as:

Answer 6

No longer having value

Question 7

Longer lead times may contribute directly to ____________________ inventory levels.

Answer 7

Higher

Question 8

The time from purchase order placement to product receipt is defined as:

Answer 8

Lead time

Question 9

All of the following can be defined as raw materials, except:

Answer 9

Maintenance equipment

Question 10

What best describes how often products are used and replaced in a given time period?

Answer 10

Inventory turns