Inventory Management Fundamentals

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1. 1

   What is the primary purpose of inventory management?

   A To ensure the right amount of inventory is available at the right time. B To increase production speed. C To maximize product diversity.
2. 2

   Which of the following is a common method for inventory evaluation?

   A Demand forecasting. B ABC analysis. C Just-in-time production.
3. 3

   What is Economic Order Quantity (EOQ)?

   A The optimal order quantity minimizing total inventory costs. B The quantity needed to maintain lead time. C The maximum amount of stock to hold.
4. 4

   Which of the following describes safety stock?

   A Extra stock for promotional events. B Obsolete inventory for liquidation. C Buffer stock to prevent stockouts.
5. 5

   What role does demand forecasting play in inventory management?

   A It reduces the variety of stock items. B It predicts future inventory requirements. C It increases manufacturing times.
6. 6

   What is a Just-in-Time (JIT) system?

   A A system storing excess inventory. B A technique for reducing supplier numbers. C A strategy receiving inventory only as needed.
7. 7

   Which inventory system records inventory after each transaction?

   A Perpetual inventory system. B Periodic inventory system. C Batch processing system.
8. 8

   Which term describes products returned from customers?

   A Excess inventory. B Safety stock. C Reverse logistics.
9. 9

   What is a lead time in inventory management?

   A Time from order placement to delivery. B Time inventory is stored in a warehouse. C Time taken for product disposal.
10. 10

    Which costs accumulate from holding unsold inventory?

    A Order costs. B Carrying costs. C Manufacturing costs.