This quiz works best with JavaScript enabled. Home > 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 (20 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) Just in time inventory. C) Perpetual 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 C will need close attention to monitor. C) Class A items are the most critical items. D) Based on annual consumption. Show Answer Correct Answer: B) 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) Safety stock, Leadtime, Statistical. B) Statistical, Cycle order, Lead Time. C) Leadtime, statistical, Safety stock. D) Safety stock, Leadtime, Cycle order. Show Answer Correct Answer: D) 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) Inventory Shrinkage. C) Physical Inventory. D) Finished Goods. Show Answer Correct Answer: A) Safety Stock. 9. Find and removes materials from store A) Reverse Logistics. B) Stock Control. C) Outward Transport. D) Order Picking. Show Answer Correct Answer: D) Order Picking. 10. Moving materials into the organization from supplier A) Logistics. B) Supply Chain. C) Inbound Logistics. D) Outbound Logistics. 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) Growing, inventory, insurance. D) Insurance, consumption, inventory. Show Answer Correct Answer: B) Manufacturing, growing, consumption. 12. Information recorded by the business about the goods they receive is known as a: A) Purchase order. B) Shipping order. C) Receiving record. D) Inventory record. 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) Stock needs. C) Carrying costs. D) Sales commissions. Show Answer Correct Answer: D) Sales commissions. 15. HPP formula? A) HPP = (Initial Preparation + Purchase)-Final Preparation. B) HPP = (Initial Preparation-Purchase) + Final Preparation. C) HPP = (Initial Preparation-Final Preparation) x 100%. D) HPP = (Initial Preparation + Final Preparation) /2. Show Answer Correct Answer: A) HPP = (Initial Preparation + Purchase)-Final Preparation. 16. The number of units of an inventory consumed over a period of time. A) Usage. B) Work In Process. C) Lead Time. D) Mean Absolute Deviation. Show Answer Correct Answer: A) Usage. 17. 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) Just in Time (JIT) inventory. B) Tickler Inventory Control. C) Perpetual Inventory Systems. D) Just in Case (JIC) Inventory. Show Answer Correct Answer: D) Just in Case (JIC) Inventory. 18. 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. 19. Vendors are ..... A) The branch of government that gives financial help. B) The people that buy stocks into your company. C) The businesses that sell you inventory. D) The employees that get taxes taken out. Show Answer Correct Answer: C) The businesses that sell you inventory. 20. 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. Next →Related QuizzesInventory Production QuizzesInventory And Production Management Quiz 2Inventory And Production Management Quiz 3Inventory And Production Management Quiz 4Inventory And Production Management Quiz 5Inventory And Production Management Quiz 6Inventory And Production Management Quiz 7Inventory And Production Management Quiz 8Inventory And Production Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books