This quiz works best with JavaScript enabled. Home > Inventory Production > Inventory And Production Management > Inventory And Production Management – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inventory And Production Management Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The expenses incurred to create and process an order to a supplier. A) Purchasing costs. B) Ordering costs. C) Stockout costs. D) Carrying costs. Show Answer Correct Answer: B) Ordering costs. 2. 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) Barelo Law. B) Parelo Law. C) Pareto Law. D) Potato Law. Show Answer Correct Answer: C) Pareto Law. 3. A primary concern to retail, wholesale, and manufacturing is ..... A) Planning purchases. B) Inventory management. C) Managing purchases. D) Inventory control. Show Answer Correct Answer: C) Managing purchases. 4. An accounting of a business's entire inventory, e.g. all goods present in the business at a certain time. A) Inventory. B) Safety Stock. C) Usage. D) Physical Inventory. Show Answer Correct Answer: D) Physical Inventory. 5. 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. 6. 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, 475 units. B) 1, 625 units. C) 9, 275 units. D) 1, 275 units. Show Answer Correct Answer: B) 1, 625 units. 7. 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. 8. 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. 9. What is meant by availability control? A) Manage procurement costs. B) Manage the availability of goods. C) Manage goods orders. D) Maintain the physical condition of the goods. Show Answer Correct Answer: B) Manage the availability of goods. 10. Inventory management relate to ..... ? A) Dependant demand. B) Independent demand. C) MRP. D) BOM. Show Answer Correct Answer: B) Independent demand. 11. 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. 12. What is the name of materials used in the production process that do not become part of the product? A) Raw materials. B) Work-in-process. C) Finished goods. D) MRO items. Show Answer Correct Answer: D) MRO items. 13. Inventory management helps businesses be successful ..... It requires the understanding of A) Inventory Levels. B) Inventory Value. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 14. What key aspect of inventory is focused on how much of each inventory item can be suitably housed and where to send it? A) Storage. B) Forecasting. C) Analysis. D) Techniques. Show Answer Correct Answer: A) Storage. 15. What key aspect of inventory is focused on how much stock is needed to satisfy demand over an upcoming time period? A) Storage. B) Analysis. C) Purchasing. D) Forecasting. Show Answer Correct Answer: D) Forecasting. 16. Those items on which all manufacturing operations, including final test, have been completed. A) Finished goods. B) Safety Stock. C) Physical Inventory. D) Reorder Point. Show Answer Correct Answer: A) Finished goods. 17. The amount ordered from time period to time period. A) Inventory Order System. B) Reorder Quantity. C) Safety Stock. D) Inventory Management. Show Answer Correct Answer: B) Reorder Quantity. 18. Managing purchases includes ..... A) Selecting the cheapest, lowest quality goods you can find. B) Selecting the appropriate quality goods that match your needs. C) Selecting the most expensive, highest quality goods. D) None of the above. Show Answer Correct Answer: B) Selecting the appropriate quality goods that match your needs. 19. Managing purchases may include ..... A) Timing your purchases so that your money/ resources are not tied up longer than they need to be. B) Taking advantages of economic conditions. C) Stocking up when necessary. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Gives a mechanism for initiating and controlling the flow ofmaterials through a supply chain. A) Supply Chain. B) Procurement. C) Purchasing. D) Physical Distribution Management. Show Answer Correct Answer: C) Purchasing. ← PreviousNext →Related QuizzesInventory Production QuizzesInventory And Production Management Quiz 1Inventory 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