SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Inventory Management
Start Test
Study First
Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Customers demand for finished goods
Inventory management
Different departments in a firm
Driving force behind the flow
Anticipation stock (seasonal stock)
2. Purchase economies - production economies - transportation economies - hedging against increasing materials cost - smooth production and stabilize manpower levels when seasonality is an issue
External shortage
Finished Goods Inventory
Economic Factors
Safety stock (buffer stock)
3. Gives firms a competitive advantage due to lower costs and greater flexibility
Capital cost
In-Proccess Goods
Less inventory
Onventory management
4. 1) stock of material on hand at a given time (tangible assets that can be seen - measured - and counted) 2) utilized assets waiting for sale of use
Time Factor
Inventory
Purchasing discounts
Different departments in a firm
5. Time factor - discontinuity factor - uncertainty factor - economy factor
Type of inventory system
Growing companies
Type of lead time
Functional factors to explain why inventory exists
6. Limitations placed on inventory systems - ex: space constraints - capital - facility - equipment - personal - management policies and administrative decisions
Manufacturers
Discontinuity Factor
Contraints
Demands
7. Units taken from inventory - can be categorized by: 1) size (magnitude/quality - constant vs variable and deterministic vs unknown vs probabilistic) 2) rate (def size over a period of time) 3) pattern (how demand is withdrawn from inventory - be
Demands
Purchasing discounts
Properties of inventory
Reasons why inventory exists
8. As you move up in the supply chain...
Retailers - wholesalers - and distributors
Problems become more complex
Decoupling stock
Supplies inventory
9. Supplies - raw materials - in-processed goods - finished goods
Types of inventory
Sub goals of inventory management
Second phase
Supplies inventory
10. Cost of obsolescence - damage cost - shrinkage (theft) cost
Repetiveness
Reasons why inventory exists
Capital costs (opportunity costs)
Inventory risk cost
11. One firms finished goods may be another firms supplies or raw materials
Types of inventory
Classification of Inventory item
Contraints
Source of supply
12. Items purchased to be USED in the production process; they will be modified or transformed into the final product; isolate the supplier and the user
Decoupling stock
Raw Materials Inventory
Properties of inventory
Inventory holding costs
13. Time factor - discontinuity factor - uncertainty factor - and economic factor
Type of inventory system
Working stock (cycle stock)
Raw Materials Inventory
The categorization of inventory by reasons for its existence
14. Inventory build up to cope with expected changes; reasons for carrying: seasonal surges - promotional items - scheduled stoppage - seasonal disruptions (weather - supply - ect) - other expected issues (possible labor shortages during contract n
Second phase
Type of inventory system
Anticipation stock (seasonal stock)
Type of lead time
15. Final product - available for storage - distribution - or sale; isolate the customer from the producer
Types of inventory
Supplies inventory
Costs
Finished Goods Inventory
16. Working stock - anticipation stock - safety stock - pipeline stock - decoupling stock - psychic stock
Less inventory
The categorization of inventory by the purpose that it serves
Problems become more complex
Inventory
17. Demands - replenishments - - constraints - and costs
Major components of inventory carrying cost
Inventory
Properties of inventory
Inventory service cost
18. Sacrificed in exchange for buying needed machines
Classification of Inventory item
Retailers - wholesalers - and distributors
Purchasing discounts
Uncertainty Factors
19. Often divided up over all departments each with its own agenda: purchasing-raw materials and purchased items - manufacturing-work in progress - marketing-finished goods and distribution - it is usually best to give responsibility for all inventory
Responsibility
Types of inventory
Capital costs (opportunity costs)
Economic Factors
20. The cost associated with a foregone alternative use of the capital - that is - the benefits that could have been obtained from that alternative
Repetiveness
Storage space
Functional factors to explain why inventory exists
Capital cost
21. Those cost that vary with the amount of inventory in the short run
Type of lead time
Stock out costs
Inventory management
Storage space
22. Items consumes in the normal functioning of a firm that are NOT part of the final product; ex: pencils - light bulbs - drill bits - paper
Third phase
Basic types of inventory
Supplies inventory
Types of inventory
23. Allows one part of the system to be isolated from the next
Decoupling stock
Additional phases
Inventory holding costs
Demands
24. Are associated with the operation of an inventory system and result from action or inaction - they are the basic economics parameters to any inventory decision model (purchase cost - order set up cost - stock our cost - and holding cost)
Inventory risk cost
Pipeline stock
Driving force behind the flow
Costs
25. The economic consequences of an internal or external shortage - vary greatly between items and customers - very difficult to estimate - most firms avoid messing with this by specifying customer service levels
Stock out costs
Internal shortage
Onventory management
Repetiveness
26. Materials are used by manufacturing and fill a second pool of work in process - this pool must be managed in relation to the capacity of the facility
Third phase
Second phase
Economic Factors
Repetiveness
27. Run out of material or supplies - production stopping - deadlines not met
Type of inventory system
Internal shortage
Types of inventory
How are inventory problems classified
28. Involves controlling the flow of materials into and out of a system - a big timing problem
Inventory management
Reasons why inventory exists
Supplies inventory
Properties of inventory
29. Should be in charge of all materials-relatied functions including: purchasing - transportation - storage - production control - and inventory - ; they must be viewed on same level as finance - marketing - engineering - ext
In-Proccess Goods
Inventory/materials manager
Type of lead time
Additional phases
30. Purchase - oder cost or set up cost - stock out cost - and inventory holding costs (aka inventory carrying costs)
Storage space
Driving force behind the flow
Costs
Types of inventory costs
31. The cost of issuing a purchase order/placing an order if obtained externally - the cost of setting up production if made in house
Classifying inventory problems
Order cost or set up cost
Properties of inventory
Inventory carrying cost
32. Inventory held in advance of requirements - reasons for carrying: economies of scale (or batching economies) - price (quantity) discounts - transportation rates - production economies
Working stock (cycle stock)
Inventory risk cost
Sub goals of inventory management
Pipeline stock
33. Repetiveness - source of supply - type of demand - type of lead time - type of inventory
In-Proccess Goods
How are inventory problems classified
Less inventory
Third phase
34. Often short on cash because what little they have they devote to growth
Capital cost
Different departments in a firm
Classification of Inventory item
Growing companies
35. Cost of the facility - material handling (labor and energy) - maintenance cost - and some utility cost
Storage space costs
The categorization of inventory by reasons for its existence
Retailers - wholesalers - and distributors
Economic Factors
36. Have most complex and difficult inventory problems
Manufacturers
Raw Materials Inventory
Economic Factors
Time Factor
37. Includes associated insurance cost (ex insurance for fire and theft) and associated taxes ( can vary substantially from location to location - as much as 0% to 20% of value of goods held in inventory)
Material costs
Inventory service cost
In-Proccess Goods
Demands
38. Often a lot of conflict when it comes to inventory decisions - sub optimization problems (managers only looking out for their own departments)
The categorization of inventory by the purpose that it serves
Inventory management
Different departments in a firm
Reasons why inventory exists
39. 1) difficulties in synchronizing supply and demand (supply and demand often differ in the rates at which they provide and require stock) 2) material-related operations take time (goods cannot be produced the instant demand occurs)
Raw Materials Inventory
Basic types of inventory
Reasons why inventory exists
Classifying inventory problems
40. Associated insurance cost - associated taxes
Different departments in a firm
Classification of Inventory item
Hurdle rate
Inventory service cost
41. Internal vs external
Storage space
Capital costs (opportunity costs)
Source of supply
Pipeline stock
42. Each pool requires synchronization of the rate of flow into and from it - no pool can be controlled without respect to the others - problems in one pool will effect all others - raises question of how much to order at any given time and when to pl
Economic Factors
Uncertainty Factors
Inventory flow
Inventory/materials manager
43. The stock of materials on hand at a given time and the unutilized assets waiting for sale or use
Hurdle rate
Inventory management
Inventory
Cost accumulation
44. 1) minimize inventory investment 2) maximize customer service 3) assure efficient plant operation
Goals of inventory management
Retailers - wholesalers - and distributors
Inventory carrying cost
Inventory risk cost
45. Supplies - raw materials - in process goods - and finished goods
Storage space
Hurdle rate
Basic types of inventory
Storage space costs
46. Display inventory carried to increase product visibility stimulate demand
Inventory service cost
Psychic stock
Benefits of inventory/material manager
Consumption
47. As items are completed - they enter another pool-finihsed goods - this pool must be controlled with regard to external demand
Sub goals of inventory management
Third phase
Supplies inventory
Stock out costs
48. Constant vs variable
Inventory risk cost
Type of lead time
Driving force behind the flow
Pipeline stock
49. The cost associated with the money tied up in inventory and the cost associated with maintaining it in storage - usually expresses as a percentage of items value
The categorization of inventory by reasons for its existence
Type of inventory system
Inventory carrying cost
Classifying inventory problems
50. The cost associated with a foregone alternative use of the capital - that is - the benefits that could have been obtained from that alternative - usually the largest component of the inventory carrying cost - usually set to the value of the firms
Capital costs (opportunity costs)
Different departments in a firm
Hurdle rate
Inventory holding costs