Inventory Management Learning Block 1 Practice Questions

Question 1

Inventory can be defined as:

Answer 1

Raw materials, work in process, finished goods, merchandise, spare parts and other operating supplies, which may be found in factories, warehouses, retail stores, or other types of facilities

Question 2

What is one of the greatest challenges in managing inventory?

Answer 2

Balancing service with demand

Question 3

Firms hold inventory for which reason?

Answer 3

To meet the needs of customers

Question 4

Cycle stock is held:

Answer 4

To respond to normal demand or consumption

Question 5

Inventory management is a means of:

Answer 5

Controlling the flow of products into, within, and out of an organization

Question 6

Measuring inventory turnover involves:

Answer 6

Measuring the rate at which inventory moves through a facility

Question 7

A key responsibility in inventory management is forecasting the amount of inventory that will be required over a(n):

Answer 7

Set period of time to meet customer needs

Question 8

The duties of an inventory management employee include:

Answer 8

Maintaining accurate and acceptable inventory levels

Question 9

Firms hold safety stock (buffer stock) for what reason?

Answer 9

To protect against uncertainties in the supply chain

Question 10

What types of industries require significant seasonal stock?

Answer 10

Apparel, sporting goods, and specialty holiday