Week 4 : Inventory Mgt.

Question 1

• objective is to provide a continous flow of goods (tangible) and to match the quantity and quantity of goods kept in proper inventory as closely as possible with sales demand to meet the required profit in the production and delivery of products both to the organization and individual clients.

Answer 1

Inventory Management

Question 2

Two Concepts of Inventory Management

Answer 2

1. Just in Time (JIT)
2. Electronic Data Interchange (EDI)

Question 3

• means receiving and using materials or goods only when they are needed for production or distribution, rather than keeping excess inventory on hand.

Answer 3

Just in Time (JIT)

Question 4

• in inventory management refers to the computerized exchange of business documents, such as purchase orders and invoices, between trading partners using standardized electronic formats.

Answer 4

Electronic Data Interchange (EDI)

Question 5

• refers to the storage and management of goods and products in a designated facilities, known as a warehouse. It involves organizing, storing and tracking inventory to ensure that products are readily available when needed for distribution or sale.

Answer 5

Warehousing

Question 6

• are storage facilities owned and operated by a specific company for its own use.

Answer 6

Private Warehouses

Question 7

• are storage facilities available for use by multiple companies on a rental basis.

Answer 7

Public Warehouses

Question 8

• are secure storage facilities when imported goods can be stored without immediate payment of import duties and taxes.

Answer 8

Bonded Warehousing

Question 9

• involves storing goods at locations closer to the point of use or consumption, rather than in a centralized warehouse.

Answer 9

Field Warehousing

Question 10

Four Types of Warehousing

Answer 10

1. Private Warehouses
2. Public Warehouses
3. Bonded Warehousing
4. Field Warehousing

Question 11

• is the process of buying, carrying and merchandising its subsequent resale to the organizational customers, retailers and/or other wholesalers but not the sale of significant quantity to final consumers.

Answer 11

Wholesaling

Question 12

• a wholesaler is closely connected to the production process and may even be involved in creating the products.

Answer 12

Manufacturing Wholesaling

Question 13

• the wholesaler buys product in bulk from manufacturers and then resells them to retailers or other businesses without altering the products.

Answer 13

Merchant Wholesaling

Question 14

• they facilitate transactions between buyers and sellers without taking ownership of the products themselves.

Answer 14

Agents and Brokers

Question 15

• refers to the process of selling products directly to consumers is a store, online, or through other channels. It involves managing the inventory of products available for sale, ensuring they are well- stocked to meet customer demand while minimezing inventory.

Answer 15

Retailing

Question 16

• operates only one outlet due to limited resources and offers personalized service.

Answer 16

Independent Retailer

Question 17

involves common ownership of multiple outlets with centralized purchasing and well-known branding.

Answer 17

Retail Chain

Question 18

A business model where an individual or group operates a store under the brand and guidance of a larger company.

Answer 18

Retail Franchising

Question 19

A section within a larger retail store rented out to a separate business.

Answer 19

Leased Department

Question 20

Retail businesses owned and operated by customers, focused on quality goods at fair prices.

Answer 20

Consumer Cooperative

Question 21

refers to the practice of stocking and selling a wide variety of unrelated or diverse products within the same retail store or inventory system.

Answer 21

Scrambled Merchandising