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. 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
Purchase costs
Second phase
Order cost or set up cost
Less inventory
2. What purpose does inventory serve? working stock - anticipation stock (seasonal stock) - safety (buffer) stock - pipeline stock - decoupling stock - psychic stock
Classifying inventory problems
Inventory/materials manager
Functional classifications
Initial phase of inventory flow
3. One firms finished goods may be another firms supplies or raw materials
Working stock (cycle stock)
Inventory flow
Classification of Inventory item
Material costs
4. 1) minimize inventory investment 2) maximize customer service 3) assure efficient plant operation
Consumption
Goals of inventory management
Major components of inventory carrying cost
Inventory holding costs
5. 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
Inventory service cost
Inventory holding costs
Second phase
Economic Factors
6. Supplies - raw materials - in process goods - and finished goods
Inventory/materials manager
Inventory risk cost
Types of inventory costs
Basic types of inventory
7. The stock of materials on hand at a given time and the unutilized assets waiting for sale or use
Purchasing discounts
Storage space
Supplies inventory
Inventory management
8. 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
Type of lead time
Cost accumulation
Additional phases
Discontinuity Factor
9. Involves controlling the flow of materials into and out of a system - a big timing problem
Inventory risk cost
Third phase
Internal shortage
Inventory management
10. Final product - available for storage - distribution - or sale; isolate the customer from the producer
The categorization of inventory by reasons for its existence
Inventory flow
Finished Goods Inventory
Major components of inventory carrying cost
11. Includes cost of obsolescence (equal to the original cost-salavage cost) - damage cost - and shrinkage (theft) cost
Additional phases
Pipeline stock
Contraints
Inventory risk cost
12. 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
Classification of Inventory item
Types of inventory
Costs
Capital costs (opportunity costs)
13. Cost of obsolescence - damage cost - shrinkage (theft) cost
Basic types of inventory
Inventory risk cost
How are inventory problems classified
Discontinuity Factor
14. Limitations placed on inventory systems - ex: space constraints - capital - facility - equipment - personal - management policies and administrative decisions
Benefits of inventory/material manager
Contraints
Purchasing discounts
In-Proccess Goods
15. Capital costs - storage space costs - inventory service cost - inventory risk cost
Storage space
Contraints
Major components of inventory carrying cost
Different departments in a firm
16. Fewer department conflicts - less sub optimization - consolidation of activities - single source of accountability
Inventory risk cost
Retailers - wholesalers - and distributors
Problems become more complex
Benefits of inventory/material manager
17. Items consumes in the normal functioning of a firm that are NOT part of the final product; ex: pencils - light bulbs - drill bits - paper
Decoupling stock
Supplies inventory
Raw Materials Inventory
Inventory/materials manager
18. 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
Third phase
Initial phase of inventory flow
Onventory management
Internal shortage
19. Perpetual vs periodic
Reasons why inventory exists
Type of inventory system
Properties of inventory
Time Factor
20. Allows one part of the system to be isolated from the next
Psychic stock
Types of inventory costs
Decoupling stock
Driving force behind the flow
21. 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
Storage space costs
Properties of inventory
Psychic stock
22. 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)
Storage space
Purchase costs
The categorization of inventory by the purpose that it serves
Costs
23. Time factor - discontinuity factor - uncertainty factor - economy factor
Functional factors to explain why inventory exists
Raw Materials Inventory
Goals of inventory management
Inventory/materials manager
24. Demands - replenishments - - constraints - and costs
Inventory flow
Properties of inventory
Reasons why inventory exists
Inventory service cost
25. Constant vs variable
Benefits of inventory/material manager
Type of lead time
Order cost or set up cost
Consumption
26. As items are completed - they enter another pool-finihsed goods - this pool must be controlled with regard to external demand
Properties of inventory
Less inventory
Third phase
Basic types of inventory
27. Have most complex and difficult inventory problems
Safety stock (buffer stock)
Hurdle rate
Benefits of inventory/material manager
Manufacturers
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
Inventory/materials manager
Basic types of inventory
Inventory flow
Manufacturers
29. Purchase economies - production economies - transportation economies - hedging against increasing materials cost - smooth production and stabilize manpower levels when seasonality is an issue
Working stock (cycle stock)
Pipeline stock
Economic Factors
The categorization of inventory by reasons for its existence
30. Repetiveness - source of supply - type of demand - type of lead time - type of inventory system
Classifying inventory problems
Functional factors to explain why inventory exists
Driving force behind the flow
Inventory flow
31. Run out of material or supplies - production stopping - deadlines not met
Discontinuity Factor
Third phase
Problems become more complex
Internal shortage
32. Often a lot of conflict when it comes to inventory decisions - sub optimization problems (managers only looking out for their own departments)
Different departments in a firm
Contraints
Stock out costs
Sub goals of inventory management
33. 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
Functional classifications
Additional phases
Initial phase of inventory flow
Raw Materials Inventory
34. Inventory partially completed finished products that are still in the production process; isolate the production departments from one another
In-Proccess Goods
Consumption
External shortage
Growing companies
35. 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
Cost accumulation
Major properties of inventory
Internal shortage
36. Repetiveness - source of supply - type of demand - type of lead time - type of inventory
The categorization of inventory by reasons for its existence
How are inventory problems classified
Order cost or set up cost
Types of inventory costs
37. Internal vs external
Working stock (cycle stock)
Source of supply
Types of inventory costs
Inventory service cost
38. 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
Storage space
Discontinuity Factor
Inventory
Inventory risk cost
39. 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
Third phase
Responsibility
Major components of inventory carrying cost
Inventory
40. If the firm uses a warehouse or distributor centers - there must be additional pools of finished inventory
Time Factor
Major components of inventory carrying cost
Additional phases
Internal shortage
41. Supplies - raw materials - in-processed goods - finished goods
Types of inventory
Inventory flow
Source of supply
Major components of inventory carrying cost
42. Inventory held in advance of requirements - reasons for carrying: economies of scale (or batching economies) - price (quantity) discounts - transportation rates - production economies
Types of inventory
Classifying inventory problems
Functional factors to explain why inventory exists
Working stock (cycle stock)
43. Associated insurance cost - associated taxes
Inventory flow
Purchase costs
Responsibility
Inventory service cost
44. Display inventory carried to increase product visibility stimulate demand
Psychic stock
Basic types of inventory
Type of demand
Inventory service cost
45. Cost of the facility - material handling (labor and energy) - maintenance cost - and some utility cost
Sub goals of inventory management
Costs
Storage space costs
Classification of Inventory item
46. Minimum rate of return expected on new investments
Capital cost
Time Factor
Basic types of inventory
Hurdle rate
47. A customers order cannot be met - backorder costs - present profit loss - future profit loss
Types of inventory costs
External shortage
Capital costs (opportunity costs)
Functional factors to explain why inventory exists
48. Usually a firm's largest expenditure
Inventory service cost
Capital cost
Source of supply
Material costs
49. Often everybody's concern - but nones responsibility
Onventory management
Raw Materials Inventory
Supplies inventory
Stock out costs
50. 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
Replenishments
Sub goals of inventory management
Storage space costs
Source of supply