Test your basic knowledge |

Inventory Management

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. Perpetual vs periodic






2. 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






3. Capital costs - storage space costs - inventory service cost - inventory risk cost






4. Repetiveness - source of supply - type of demand - type of lead time - type of inventory






5. 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






6. 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)






7. Cost of obsolescence - damage cost - shrinkage (theft) cost






8. The cost associated with a foregone alternative use of the capital - that is - the benefits that could have been obtained from that alternative






9. Customers demand for finished goods






10. Usually a firm's largest expenditure






11. As items are completed - they enter another pool-finihsed goods - this pool must be controlled with regard to external demand






12. Involves controlling the flow of materials into and out of a system - a big timing problem






13. 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






14. Allows one part of the system to be isolated from the next






15. Allows freedom of operation for members of the supply chain; allows the treatment of various dependent operations (ex: retailing - warehousing - manufacturing - and purchasing) in an independent and economical manor






16. 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






17. Fewer department conflicts - less sub optimization - consolidation of activities - single source of accountability






18. Production does not need to be geared directly to this; it is not faced to adapt to the necessities of production






19. Time factor - discontinuity factor - uncertainty factor - and economic factor






20. Gives firms a competitive advantage due to lower costs and greater flexibility






21. Associated insurance cost - associated taxes






22. Often short on cash because what little they have they devote to growth






23. Final product - available for storage - distribution - or sale; isolate the customer from the producer






24. Cost of the facility - material handling (labor and energy) - maintenance cost - and some utility cost






25. 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






26. Units put into inventory - can be classified by: size - pattern - lead time (time between order and addition to inventory - constant vs variable)






27. Often everybody's concern - but nones responsibility






28. 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






29. Minimum rate of return expected on new investments






30. The cost associated with the money tied up in inventory and the cost associated with maintaining it in storage - usually expressed as a percentage of items value - includes capital costs - storage space costs - inventory service costs and invento






31. Time factor - discontinuity factor - uncertainty factor - economy factor






32. Protection from the unexpected (forecast errors - break downs - strikes - disasters)






33. Run out of material or supplies - production stopping - deadlines not met






34. What purpose does inventory serve? working stock - anticipation stock (seasonal stock) - safety (buffer) stock - pipeline stock - decoupling stock - psychic stock






35. If the firm uses a warehouse or distributor centers - there must be additional pools of finished inventory






36. It takes time to make a product - but consumers want them on demand






37. Purchase economies - production economies - transportation economies - hedging against increasing materials cost - smooth production and stabilize manpower levels when seasonality is an issue






38. 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)






39. 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






40. One firms finished goods may be another firms supplies or raw materials






41. Constant vs variable - independent vs dependent






42. Constant vs variable






43. Demands - replenishments - - constraints - and costs






44. Often a lot of conflict when it comes to inventory decisions - sub optimization problems (managers only looking out for their own departments)






45. A customers order cannot be met - backorder costs - present profit loss - future profit loss






46. Supplies - raw materials - in-processed goods - finished goods






47. 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






48. Sacrificed in exchange for buying needed machines






49. The cost of issuing a purchase order/placing an order if obtained externally - the cost of setting up production if made in house






50. 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







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests