Inventory Management Learning Block 3 Practice Questions

Question 1

Inventory control is defined as:

Answer 1

Managing the supply, storage, and accessibility of materials to meet customer’s needs

Question 2

To aid in inventory control, inventory personnel often utilize Pareto’s principle, which asserts that:

Answer 2

When analyzing a large group of items, most of the activity will be concentrated in a relatively small number of items

Question 3

Warehouse Management Systems (WMS) are computer systems that utilize specialized inventory software used to:

Answer 3

Track inventory levels, orders, sales, and deliveries

Question 4

Cross-docking is utilized to:

Answer 4

Sort and ship manufacturing components, customer orders, or other products as they are received, without ever being stored

Question 5

The primary purpose of semi-permanent storage is for the:

Answer 5

Storage of buffer or safety stock

Question 6

Good record keeping is a reflection of the:

Answer 6

Overall inventory system

Question 7

Counting the entire inventory at the same time is defined as:

Answer 7

Physical inventory

Question 8

Many warehouses use RFID technology and place microchips on products to:

Answer 8

Identify and track items in an inventory control system

Question 9

Cycle counting is defined as which process?

Answer 9

Systematic counting of each item carried in stock at least once per year at a planned interval or frequency

Question 10

Inventory control systems provide control for SKUs (stock keeping units), which are defined as:

Answer 10

Items that are exactly identical in form, fit, and function