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Test your basic knowledge |
Inventory Management
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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. 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)
Source of supply
Raw Materials Inventory
Goals of inventory management
Reasons why inventory exists
2. Demands - replenishments - - constraints - and costs
Different departments in a firm
Properties of inventory
Functional classifications
Classifying inventory problems
3. Constant vs variable
Type of lead time
Working stock (cycle stock)
Type of demand
Inventory management
4. 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
Classification of Inventory item
Second phase
Inventory management
Driving force behind the flow
5. Run out of material or supplies - production stopping - deadlines not met
Anticipation stock (seasonal stock)
Initial phase of inventory flow
Internal shortage
Driving force behind the flow
6. Display inventory carried to increase product visibility stimulate demand
Classification of Inventory item
Psychic stock
Initial phase of inventory flow
Problems become more complex
7. Purchase economies - production economies - transportation economies - hedging against increasing materials cost - smooth production and stabilize manpower levels when seasonality is an issue
Economic Factors
Discontinuity Factor
Classification of Inventory item
Types of inventory costs
8. The cost of issuing a purchase order/placing an order if obtained externally - the cost of setting up production if made in house
Growing companies
Order cost or set up cost
Uncertainty Factors
Psychic stock
9. Allows one part of the system to be isolated from the next
Different departments in a firm
Decoupling stock
Onventory management
Inventory
10. Repetiveness - source of supply - type of demand - type of lead time - type of inventory system
Goals of inventory management
Classifying inventory problems
Basic types of inventory
Inventory management
11. 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
The categorization of inventory by reasons for its existence
Hurdle rate
Major properties of inventory
Initial phase of inventory flow
12. 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
The categorization of inventory by reasons for its existence
Costs
Retailers - wholesalers - and distributors
Pipeline stock
13. Internal vs external
Responsibility
Source of supply
Costs
Manufacturers
14. Cost of obsolescence - damage cost - shrinkage (theft) cost
Major properties of inventory
Growing companies
Capital cost
Inventory risk cost
15. Time factor - discontinuity factor - uncertainty factor - economy factor
Purchase costs
Finished Goods Inventory
Functional factors to explain why inventory exists
Inventory management
16. 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
Economic Factors
Inventory carrying cost
Working stock (cycle stock)
Properties of inventory
17. Fewer department conflicts - less sub optimization - consolidation of activities - single source of accountability
Benefits of inventory/material manager
Inventory
The categorization of inventory by reasons for its existence
Anticipation stock (seasonal stock)
18. Repetiveness - source of supply - type of demand - type of lead time - type of inventory
Driving force behind the flow
Cost accumulation
Additional phases
How are inventory problems classified
19. 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)
Purchase costs
Type of lead time
Inventory carrying cost
Capital cost
20. Customers demand for finished goods
Type of demand
Inventory carrying cost
Inventory risk cost
Driving force behind the flow
21. 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
Pipeline stock
Inventory carrying cost
Finished Goods Inventory
Inventory/materials manager
22. Capital costs - storage space costs - inventory service cost - inventory risk cost
Major components of inventory carrying cost
Internal shortage
External shortage
Inventory
23. Those cost that vary with the amount of inventory in the short run
Inventory holding costs
Storage space
Costs
Type of demand
24. Single order vs repetitive order
Uncertainty Factors
Classification of Inventory item
Repetiveness
Inventory service cost
25. Inventory held in advance of requirements - reasons for carrying: economies of scale (or batching economies) - price (quantity) discounts - transportation rates - production economies
Cost accumulation
Working stock (cycle stock)
The categorization of inventory by the purpose that it serves
Inventory management
26. Purchase - oder cost or set up cost - stock out cost - and inventory holding costs (aka inventory carrying costs)
Classification of Inventory item
Types of inventory costs
Onventory management
Inventory
27. Inventory partially completed finished products that are still in the production process; isolate the production departments from one another
Consumption
Inventory management
In-Proccess Goods
Growing companies
28. Sacrificed in exchange for buying needed machines
Order cost or set up cost
Purchasing discounts
Additional phases
Supplies inventory
29. Protection from the unexpected (forecast errors - break downs - strikes - disasters)
Cost accumulation
Basic types of inventory
Uncertainty Factors
Hurdle rate
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
Hurdle rate
Time Factor
Additional phases
Inventory holding costs
31. Items consumes in the normal functioning of a firm that are NOT part of the final product; ex: pencils - light bulbs - drill bits - paper
Goals of inventory management
Different departments in a firm
Supplies inventory
Onventory management
32. Cost of the facility - material handling (labor and energy) - maintenance cost - and some utility cost
Problems become more complex
Safety stock (buffer stock)
Storage space costs
Internal shortage
33. Supplies - raw materials - in-processed goods - finished goods
Costs
Inventory risk cost
Classifying inventory problems
Types of inventory
34. Demands - replenishments - constraints - and costs
Major properties of inventory
Additional phases
Driving force behind the flow
Inventory
35. Perpetual vs periodic
Type of inventory system
Inventory management
Raw Materials Inventory
Working stock (cycle stock)
36. Production does not need to be geared directly to this; it is not faced to adapt to the necessities of production
Storage space costs
Consumption
Functional classifications
Safety stock (buffer stock)
37. Associated insurance cost - associated taxes
Properties of inventory
Major properties of inventory
Inventory service cost
The categorization of inventory by reasons for its existence
38. 1) minimize inventory investment 2) maximize customer service 3) assure efficient plant operation
Inventory carrying cost
Stock out costs
Goals of inventory management
Storage space costs
39. Minimum rate of return expected on new investments
Hurdle rate
Growing companies
Reasons why inventory exists
Properties of inventory
40. Time factor - discontinuity factor - uncertainty factor - and economic factor
The categorization of inventory by reasons for its existence
Inventory management
Storage space costs
Benefits of inventory/material manager
41. Final product - available for storage - distribution - or sale; isolate the customer from the producer
Finished Goods Inventory
Inventory risk cost
Initial phase of inventory flow
Third phase
42. Limitations placed on inventory systems - ex: space constraints - capital - facility - equipment - personal - management policies and administrative decisions
Retailers - wholesalers - and distributors
Contraints
Capital cost
Benefits of inventory/material manager
43. 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
Discontinuity Factor
Growing companies
Purchase costs
External shortage
44. Involves controlling the flow of materials into and out of a system - a big timing problem
Consumption
Working stock (cycle stock)
Inventory management
Inventory carrying cost
45. Have most complex and difficult inventory problems
Manufacturers
Problems become more complex
Inventory carrying cost
Anticipation stock (seasonal stock)
46. Often short on cash because what little they have they devote to growth
Growing companies
Raw Materials Inventory
Psychic stock
Supplies inventory
47. Often a lot of conflict when it comes to inventory decisions - sub optimization problems (managers only looking out for their own departments)
Problems become more complex
Discontinuity Factor
Different departments in a firm
Capital cost
48. 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
Responsibility
In-Proccess Goods
Consumption
Raw Materials Inventory
49. Usually a firm's largest expenditure
Contraints
Material costs
Replenishments
Safety stock (buffer stock)
50. Hold only finished goods inventories/supplies - they have inventory problems confined to supplies and finished goods
Inventory
Sub goals of inventory management
Retailers - wholesalers - and distributors
The categorization of inventory by reasons for its existence