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. 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)
Inventory flow
Inventory service cost
Inventory risk cost
Contraints
2. Inventory partially completed finished products that are still in the production process; isolate the production departments from one another
The categorization of inventory by the purpose that it serves
Supplies inventory
In-Proccess Goods
Benefits of inventory/material manager
3. Externally (aka supply line inventory)-orders place but not yet received (orders being processed and orders in transit) - internally-work in progress - reasons for carrying: time/distance - work in process inventory
Initial phase of inventory flow
Less inventory
Pipeline stock
Costs
4. The stock of materials on hand at a given time and the unutilized assets waiting for sale or use
Inventory management
Major components of inventory carrying cost
Uncertainty Factors
Additional phases
5. Goods are purchased from suppliers and the first pool of inventory investment that need management forms - the quantity and variety of items in the pool should be times to meet the need for their use by the firm
Demands
Initial phase of inventory flow
Growing companies
Capital costs (opportunity costs)
6. Supplies - raw materials - in process goods - and finished goods
Basic types of inventory
Stock out costs
Working stock (cycle stock)
Time Factor
7. Balance is key - concentration may be on one objective at certain times and on another at other times depending on needs of the firm - company policy should emphasize the need to focus on the total cost to the firm - bad idea to have lots of cash
Cost accumulation
The categorization of inventory by reasons for its existence
Reasons why inventory exists
External shortage
8. Customers demand for finished goods
Driving force behind the flow
Uncertainty Factors
Basic types of inventory
Repetiveness
9. Cost of the facility - material handling (labor and energy) - maintenance cost - and some utility cost
Inventory
Inventory management
Storage space costs
Pipeline stock
10. Constant vs variable
Inventory management
Third phase
Responsibility
Type of lead time
11. Supplies - raw materials - in-processed goods - finished goods
Reasons why inventory exists
Manufacturers
Types of inventory
Functional factors to explain why inventory exists
12. As you move up in the supply chain...
Demands
Basic types of inventory
Types of inventory
Problems become more complex
13. 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
Inventory carrying cost
Less inventory
Benefits of inventory/material manager
Cost accumulation
14. Constant vs variable - independent vs dependent
External shortage
Type of demand
Problems become more complex
Cost accumulation
15. 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
Inventory flow
Hurdle rate
Additional phases
Responsibility
16. Purchase economies - production economies - transportation economies - hedging against increasing materials cost - smooth production and stabilize manpower levels when seasonality is an issue
Third phase
Type of inventory system
Type of demand
Economic Factors
17. Production does not need to be geared directly to this; it is not faced to adapt to the necessities of production
Purchasing discounts
Consumption
Onventory management
Capital costs (opportunity costs)
18. Perpetual vs periodic
Type of demand
Growing companies
Psychic stock
Type of inventory system
19. Time factor - discontinuity factor - uncertainty factor - economy factor
Time Factor
Onventory management
Consumption
Functional factors to explain why inventory exists
20. 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
Costs
Responsibility
Inventory risk cost
Purchasing discounts
21. Time factor - discontinuity factor - uncertainty factor - and economic factor
The categorization of inventory by the purpose that it serves
Responsibility
The categorization of inventory by reasons for its existence
Inventory flow
22. Display inventory carried to increase product visibility stimulate demand
Decoupling stock
Types of inventory costs
Psychic stock
Material costs
23. Minimum rate of return expected on new investments
Additional phases
Storage space costs
Inventory service cost
Hurdle rate
24. Allows one part of the system to be isolated from the next
Basic types of inventory
Inventory management
Sub goals of inventory management
Decoupling stock
25. Low unit cost - high inventory turnover - consistency of quality - favorable supplier relations - continuity of supply - these goals of inventory management are in many ways in direct conflict
Classifying inventory problems
Major components of inventory carrying cost
Sub goals of inventory management
Inventory management
26. If the firm uses a warehouse or distributor centers - there must be additional pools of finished inventory
Additional phases
Basic types of inventory
Working stock (cycle stock)
Problems become more complex
27. Inventory held in reserve to protect against uncertainty - reasons for carrying: uncertainty around customer demand - delays or disruptions in supply
Manufacturers
Inventory holding costs
Safety stock (buffer stock)
Storage space costs
28. 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
Type of demand
Capital costs (opportunity costs)
How are inventory problems classified
Inventory
29. Those cost that vary with the amount of inventory in the short run
Contraints
Storage space
Driving force behind the flow
Hurdle rate
30. The cost associated with a foregone alternative use of the capital - that is - the benefits that could have been obtained from that alternative
Less inventory
Hurdle rate
Inventory/materials manager
Capital cost
31. Usually a firm's largest expenditure
Capital cost
Material costs
Third phase
Inventory service cost
32. As items are completed - they enter another pool-finihsed goods - this pool must be controlled with regard to external demand
The categorization of inventory by the purpose that it serves
Storage space
Third phase
Types of inventory costs
33. 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)
Inventory risk cost
Reasons why inventory exists
Capital costs (opportunity costs)
Functional classifications
34. One firms finished goods may be another firms supplies or raw materials
Classification of Inventory item
Replenishments
Time Factor
Inventory/materials manager
35. What purpose does inventory serve? working stock - anticipation stock (seasonal stock) - safety (buffer) stock - pipeline stock - decoupling stock - psychic stock
Functional factors to explain why inventory exists
Functional classifications
Types of inventory
Inventory service cost
36. Repetiveness - source of supply - type of demand - type of lead time - type of inventory system
Functional classifications
Classification of Inventory item
Classifying inventory problems
Finished Goods Inventory
37. 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
Capital cost
Type of lead time
Raw Materials Inventory
Capital costs (opportunity costs)
38. Hold only finished goods inventories/supplies - they have inventory problems confined to supplies and finished goods
Replenishments
Inventory management
Retailers - wholesalers - and distributors
Major components of inventory carrying cost
39. Gives firms a competitive advantage due to lower costs and greater flexibility
Inventory flow
Inventory risk cost
Time Factor
Less inventory
40. Involves controlling the flow of materials into and out of a system - a big timing problem
Functional factors to explain why inventory exists
Discontinuity Factor
Consumption
Inventory management
41. A customers order cannot be met - backorder costs - present profit loss - future profit loss
Retailers - wholesalers - and distributors
Benefits of inventory/material manager
Inventory management
External shortage
42. Capital costs - storage space costs - inventory service cost - inventory risk cost
Source of supply
Major components of inventory carrying cost
Anticipation stock (seasonal stock)
Material costs
43. Often a lot of conflict when it comes to inventory decisions - sub optimization problems (managers only looking out for their own departments)
Uncertainty Factors
Inventory service cost
Different departments in a firm
Finished Goods Inventory
44. Internal vs external
Psychic stock
Sub goals of inventory management
Source of supply
Decoupling stock
45. Single order vs repetitive order
The categorization of inventory by the purpose that it serves
Inventory holding costs
Repetiveness
Properties of inventory
46. 1) minimize inventory investment 2) maximize customer service 3) assure efficient plant operation
Additional phases
Goals of inventory management
Safety stock (buffer stock)
Storage space
47. Units put into inventory - can be classified by: size - pattern - lead time (time between order and addition to inventory - constant vs variable)
Storage space
Type of demand
Replenishments
Finished Goods Inventory
48. The cost for the item as it is laced in inventory - unit purchase cost (if obtained externally and includes delivery and transportation costs) - unit production cost (if made in house and includes labor - material and overhead costs)
The categorization of inventory by the purpose that it serves
Inventory carrying cost
Purchase costs
Inventory
49. Protection from the unexpected (forecast errors - break downs - strikes - disasters)
Time Factor
Classifying inventory problems
The categorization of inventory by the purpose that it serves
Uncertainty Factors
50. Associated insurance cost - associated taxes
Inventory service cost
Source of supply
Types of inventory costs
Inventory flow