U3, AOS 1 - KK16 - Strategies to improve inventory management

Question 1

What is inventory management?

Answer 1

Inventory management is the process of overseeing and controlling the ordering, storage, and use of components that a company uses in the production of the items it sells.

Question 2

True or False: Just-in-Time (JIT) inventory management reduces waste by receiving goods only as they are needed.

Answer 2

True

Question 3

Which inventory management strategy emphasizes maintaining low inventory levels?

Answer 3

Just-in-Time (JIT)

Question 4

What does FIFO stand for in inventory management?

Answer 4

First In, First Out

Question 5

Multiple Choice: What is a primary benefit of automated inventory management systems? A) Increased manual labor B) Improved accuracy C) Higher costs D) Slower processes

Answer 5

B) Improved accuracy

Question 6

What is the purpose of safety stock?

Answer 6

Safety stock is used to prevent stockouts caused by uncertainties in supply and demand.

Question 7

True or False: Inventory turnover ratio measures how many times inventory is sold and replaced over a period.

Answer 7

True

Question 8

Fill in the blank: __________ involves analyzing sales data to forecast future inventory needs.

Answer 8

Demand forecasting

Question 9

What is the primary goal of inventory management?

Answer 9

To ensure the right amount of inventory is available at the right time while minimizing costs.

Question 10

Multiple Choice: Which of the following is NOT a method of inventory valuation? A) LIFO B) FIFO C) JIT D) Weighted Average

Answer 10

C) JIT

Question 11

What does the term ‘lead time’ refer to in inventory management?

Answer 11

Lead time is the time taken from placing an order to receiving it.

Question 12

True or False: Cycle counting is a method of physical inventory auditing that involves counting a portion of the inventory on a specific schedule.

Answer 12

True

Question 13

Fill in the blank: __________ is a technique used to manage inventory levels by setting minimum and maximum levels for stock.

Answer 13

Reorder point

Question 14

What is the benefit of using inventory management software?

Answer 14

It provides real-time data, improves accuracy, and streamlines the inventory management process.

Question 15

Multiple Choice: What does the term ‘stockout’ mean? A) Excess inventory B) No stock available C) Inventory surplus D) Inventory at risk

Answer 15

B) No stock available

Question 16

True or False: Consignment inventory is owned by the supplier until it is sold by the retailer.

Answer 16

True