This quiz works best with JavaScript enabled. Home > Accounting > Inventory Production > Inventory And Production Management > Inventory And Production Management – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inventory And Production Management Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is not a counting system that can be utilised when counting inventory. A) Periodic counting system. B) Perpetual counting system. C) Demand forecasting. D) None of above. Show Answer Correct Answer: C) Demand forecasting. 2. The point at which a business orders more of a product before inventory gets too low is: A) Buffer stock. B) Reorder point. C) Stockout. D) Anticipation stock. Show Answer Correct Answer: B) Reorder point. 3. What is the other name for inventory? A) Stock keeping unit. B) Stock on hand. C) Stock in place. D) Stock to buy. Show Answer Correct Answer: B) Stock on hand. 4. Take material from departure area A) Outward transport. B) Outward logistics. C) Material handling. D) Material management. Show Answer Correct Answer: A) Outward transport. 5. Advantages of cycle counting A) Improves a firm's profitability. B) Eliminates shutdowns and interruptions. C) Ease the producton process. D) None of above. Show Answer Correct Answer: B) Eliminates shutdowns and interruptions. 6. A span of time required to perform a process ( or series of operations.The time between the recognition of the need for an order and the receipt of goods. A) Work In Process. B) Lead Time. C) Inventory Planning. D) Usage. Show Answer Correct Answer: B) Lead Time. 7. An order for a product that is currently out of stock, and so cannot yet be fulfilled for the customer. A) Back Order. B) Order Form. C) Lead Order. D) Sales Order. Show Answer Correct Answer: A) Back Order. 8. Inventory management systems can help with ..... A) Organization. B) Stress. C) Saving money. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. Inventory models for the replenishment of inventory. A) Inventory Order System. B) Inventory Policies. C) Inventory Shrinkage. D) Reorder Point. Show Answer Correct Answer: A) Inventory Order System. 10. Given the following information about a firm's stock levels, what is the reorder level of stocks? -Buffer stock is 100-Lead time is 3 weeks-Stock is used at the rate of 80 units per week-Stock deliveries are 500 units a time A) 580. B) 500. C) 180. D) 340. Show Answer Correct Answer: D) 340. 11. Definition of setup costs is: A) The demand for item is indipendent of the demand for any other item in inventory. B) Cost to prepare a machine or process for manufacturing an order. C) The costs of holding or carrying inventory over time. D) None of above. Show Answer Correct Answer: B) Cost to prepare a machine or process for manufacturing an order. 12. The cost of paying for electricity, included in what cost component? A) Various. B) Indirect. C) General. D) Maintenance. Show Answer Correct Answer: B) Indirect. 13. What should you NOT look for in a vendor A) Quality of products offered. B) What color the vendors headquarters is. C) Number of vendors you may need. D) How large their company is. Show Answer Correct Answer: B) What color the vendors headquarters is. 14. The higher the turnover rate, the ..... the sales. A) Lower. B) Same. C) Higher. D) None of above. Show Answer Correct Answer: C) Higher. 15. A ststement of a company's goals and approach to the management of inventories. A) Inventory Shrinkage. B) Inventory Management. C) Inventory Policies. D) Mean Absolute Deviation. Show Answer Correct Answer: C) Inventory Policies. 16. How many cost of inventories that you know? A) 6. B) 3. C) 2. D) 4. Show Answer Correct Answer: D) 4. 17. Which of the following statements is a Component contained in redata? A) Sales, Fees, COGS, Margins, Number of Visits. B) Sales, COGS, Margin, Cost, Profit. C) AP, Sales, Cost, Operating Profit/Loss. D) AP, Cost, Hpp Margin. Show Answer Correct Answer: B) Sales, COGS, Margin, Cost, Profit. 18. Given EOQ is 250 units, because of customer need to choose the best Total Cost, what is the new EOQ for this formula if the 1st range is ( 1-100 ). Choose your answer below. A) 100. B) 1. C) 250. D) 50. Show Answer Correct Answer: A) 100. 19. Damage and shrinkage would most likely be found in which of these costs? A) Storage. B) Service. C) Risk. D) Capital. Show Answer Correct Answer: C) Risk. 20. What key aspect of inventory is focused on when and how to create purchase orders to re-order new stock? A) Storage. B) Systems and Tools. C) Accounting. D) Tracking. Show Answer Correct Answer: A) Storage. 21. Planning purchases may also include ..... A) Never changing your inventory. B) Making changes to inventory based on needs for upcoming events or other things. C) Not planning purchases. D) Keeping inventory the same because it's easier to manage it that way. Show Answer Correct Answer: B) Making changes to inventory based on needs for upcoming events or other things. 22. Benefit from safety Stock, EXCEPT A) Protect against uncertainty in the supply of goods and customer needs. B) Closing the waiting time or delay in delivery from the supplier. C) Increase the amount of inventory stock. D) Need Variation. Show Answer Correct Answer: D) Need Variation. 23. What is the standard of service attitude of pharmacy employees towards patients? A) Tolerance. B) Optimistic. C) Empathy. D) Solutive. Show Answer Correct Answer: C) Empathy. 24. What is an itemized statement of money owed for goods shipped or services rendered. A) Invoice. B) Tax. C) Credit. D) Money laundering. Show Answer Correct Answer: A) Invoice. 25. A set inventory level where, if the total stock on hand plus on order falls to, or below that point, action is taken to replenish the stock. A) Stock Keeping Unit. B) Safety Stock. C) Reorder Quantity. D) Reorder Point. Show Answer Correct Answer: D) Reorder Point. 26. The problem of Over Stock is because, except? A) Order in retail, come in a box. B) Double orders between CITO and BPBA. C) Typing error. D) POS Error. Show Answer Correct Answer: D) POS Error. 27. What is one thing you need to keep in mind when purchasing inventory? A) Developing a model inventory. B) Keeping a very messy inventory. C) Having absolutely no system. D) Doing nothing. Show Answer Correct Answer: A) Developing a model inventory. 28. ..... is used to find and maintain inventory levels that are neither too small nor too large. A) Planning purchases. B) Managing purchases. C) Inventory management. D) Inventory control. Show Answer Correct Answer: C) Inventory management. 29. ..... is a discount from the list price of an item allowed by a manufacturer to wholesalers and merchants. A) Trade discount. B) Quality discount. C) Cash discount. D) Sells discount. Show Answer Correct Answer: A) Trade discount. 30. What do they call an order that is not yet finished or still in process? A) Post-order. B) Pre-order. C) Finished good. D) Back order. Show Answer Correct Answer: D) Back order. ← PreviousNext →Related QuizzesInventory Production QuizzesAccounting QuizzesInventory And Production Management Quiz 1Inventory And Production Management Quiz 2Inventory And Production Management Quiz 3Inventory And Production Management Quiz 4Inventory And Production Management Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books