This quiz works best with JavaScript enabled. Home > Accounting > Inventory Production > Inventory And Production Management > Inventory And Production Management – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inventory And Production Management Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following inventory methods is a physical count of inventory performed at specific time intervals and is typically used by small businesses? A) Periodic inventory. B) Perpetual inventory. C) Just in time inventory. D) Visual inventory. Show Answer Correct Answer: A) Periodic inventory. 2. When demand exceeds supply the organisation will loose sales due to unavailability of the products. A) True. B) False. C) None of the above. D) None of above. Show Answer Correct Answer: A) True. 3. The following statement is correct in relation to ABC Inventory classification, EXCEPT: A) Applies the Pareto's law. B) Class A items are the most critical items. C) Based on annual consumption. D) Class C will need close attention to monitor. Show Answer Correct Answer: D) Class C will need close attention to monitor. 4. The objectives of inventory management include the following except: A) Maximizing customer service level. B) Achieving low-cost plant operations. C) Balancing the blocked stock and unrestricted. D) Minimizing inventory investment. Show Answer Correct Answer: C) Balancing the blocked stock and unrestricted. 5. What are the parameters that affect the maximum stock level value? A) Leadtime, statistical, Safety stock. B) Safety stock, Leadtime, Statistical. C) Safety stock, Leadtime, Cycle order. D) Statistical, Cycle order, Lead Time. Show Answer Correct Answer: C) Safety stock, Leadtime, Cycle order. 6. What is meant by inventory? A) Stock or money invested. B) Availability or stored goods. C) The ability to supply on demand goods. D) Procurement process. Show Answer Correct Answer: A) Stock or money invested. 7. A device used to digitally identify items via a unique barcode, then perform inventory and fufillment tasks like booking-in, picking, counts, etc. A) Terminal Scanner. B) Bar Code scanner. C) Thermal Scanner. D) Xerox and Scanner. Show Answer Correct Answer: B) Bar Code scanner. 8. A quantity of stock planned to be in inventory to protect against fluctuations in demand or supply. A) Safety Stock. B) Finished Goods. C) Physical Inventory. D) Inventory Shrinkage. Show Answer Correct Answer: A) Safety Stock. 9. Find and removes materials from store A) Outward Transport. B) Stock Control. C) Reverse Logistics. D) Order Picking. Show Answer Correct Answer: D) Order Picking. 10. Moving materials into the organization from supplier A) Logistics. B) Outbound Logistics. C) Inbound Logistics. D) Supply Chain. Show Answer Correct Answer: C) Inbound Logistics. 11. What is the accommodates elapsed time between inventory availability? A) Inventory, manufacturing, insurance. B) Manufacturing, growing, consumption. C) Insurance, consumption, inventory. D) Growing, inventory, insurance. Show Answer Correct Answer: B) Manufacturing, growing, consumption. 12. Information recorded by the business about the goods they receive is known as a: A) Inventory record. B) Purchase order. C) Receiving record. D) Shipping order. Show Answer Correct Answer: C) Receiving record. 13. Which one of the example below is not include under types of inventory? A) Raw materials. B) Maintenance, Repair, Operating. C) Work in progress. D) Dependant demand. Show Answer Correct Answer: D) Dependant demand. 14. Which of the following is NOT a factor to be considered when managing inventory? A) Lead time. B) Carrying costs. C) Stock needs. D) Sales commissions. Show Answer Correct Answer: D) Sales commissions. 15. The number of units of an inventory consumed over a period of time. A) Usage. B) Mean Absolute Deviation. C) Lead Time. D) Work In Process. Show Answer Correct Answer: A) Usage. 16. An inventory strategy where companies keep large amounts of inventory on hand in order to minimize the probability of selling out of a stock of a product. A) Perpetual Inventory Systems. B) Just in Case (JIC) Inventory. C) Just in Time (JIT) inventory. D) Tickler Inventory Control. Show Answer Correct Answer: B) Just in Case (JIC) Inventory. 17. Inventory valuation can be performed based on below method, EXCEPT: A) FIFO. B) LIFO. C) Standard Cost. D) Estimate. Show Answer Correct Answer: C) Standard Cost. 18. Vendors are ..... A) The employees that get taxes taken out. B) The branch of government that gives financial help. C) The people that buy stocks into your company. D) The businesses that sell you inventory. Show Answer Correct Answer: D) The businesses that sell you inventory. 19. Lubricating oil is one type of inventory that is held in organisations. A) True. B) False. C) None of the above. D) None of above. Show Answer Correct Answer: A) True. 20. The expenses incurred to create and process an order to a supplier. A) Stockout costs. B) Purchasing costs. C) Ordering costs. D) Carrying costs. Show Answer Correct Answer: C) Ordering costs. 21. Classification by sales volume is one of the oldest methods used to establish selective policies or strategies. Based on the operation above, what it is often called? A) Potato Law. B) Pareto Law. C) Parelo Law. D) Barelo Law. Show Answer Correct Answer: B) Pareto Law. 22. A primary concern to retail, wholesale, and manufacturing is ..... A) Inventory management. B) Planning purchases. C) Inventory control. D) Managing purchases. Show Answer Correct Answer: D) Managing purchases. 23. An accounting of a business's entire inventory, e.g. all goods present in the business at a certain time. A) Physical Inventory. B) Inventory. C) Usage. D) Safety Stock. Show Answer Correct Answer: A) Physical Inventory. 24. Planning purchases may include ..... A) Buying items at a low price and selling them for a profit. B) Doing nothing. C) Buying items for a high price and selling them for a loss. D) Buying the wrong stuff. Show Answer Correct Answer: A) Buying items at a low price and selling them for a profit. 25. A supplier maintains a 21-day lead time for delivery of their products. The customer maintains an inventory with a safety stock of 350 units based on a usage of 425 per week. Calculate the order point (1 week = 7 days). A) 1, 625 units. B) 9, 275 units. C) 1, 275 units. D) 1, 475 units. Show Answer Correct Answer: A) 1, 625 units. 26. One of the problems of insufficient stock is: A) Lost sales. B) High storage space. C) Small reorder quantities. D) Purchase of more machinery. Show Answer Correct Answer: A) Lost sales. 27. An example(s) of inventory management system(s) include A) Bar-code scanning. B) Keeping purchase order records. C) Turning on transit notifications. D) All of the above. Show Answer Correct Answer: D) All of the above. 28. What is meant by availability control? A) Maintain the physical condition of the goods. B) Manage the availability of goods. C) Manage goods orders. D) Manage procurement costs. Show Answer Correct Answer: B) Manage the availability of goods. 29. Inventory management relate to ..... ? A) Dependant demand. B) Independent demand. C) MRP. D) BOM. Show Answer Correct Answer: B) Independent demand. 30. What is inventory management? A) To provide a selection of goods for anticipated demand. B) To decouple or seperate various parts of the production process. C) The objective of inventory management is to strike a balanace between inventory investment and customer service. D) None of above. Show Answer Correct Answer: C) The objective of inventory management is to strike a balanace between inventory investment and customer service. 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