This quiz works best with JavaScript enabled. Home > Inventory Production > Inventory And Production Management > Inventory And Production Management – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inventory And Production Management Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which one is NOT part of inventory holding cost A) Capital cost. B) Storage cost. C) Risk cost. D) Ordering cost. Show Answer Correct Answer: D) Ordering cost. 2. Purchasing additional stock of products that sell more in certain seasons is: A) Buffer stock. B) Reorder point. C) Stockout. D) Anticipation Stock. Show Answer Correct Answer: D) Anticipation Stock. 3. Which of the following statements is not a common reason for holding inventory in organisations? A) To facilitate availability of a variety products for the customer. B) To avoid price increases. C) To ensure that demand is not met. D) To take advantage of ordering cycles. Show Answer Correct Answer: C) To ensure that demand is not met. 4. The risk of providing a lot of material is A) Large embedded costs. B) Requests from operations can be well supported. C) Encouraging operations to immediately pick up the ordered material. D) Reducing the guarantee of material availability. Show Answer Correct Answer: A) Large embedded costs. 5. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to shrinkage (leakage) and insurance A) Carrying cost. B) Purchasing cost. C) Ordering cost. D) Stockout cost. Show Answer Correct Answer: A) Carrying cost. 6. A company has 9, 000 units on hand and the annual usage is 48, 000 units. There are 240 working days in the year. What is the number of days supply? A) 40 days. B) 25 days. C) 50 days. D) 45 days. Show Answer Correct Answer: D) 45 days. 7. The form a buyer sends to a vendor to officially place an order is a(n): A) Purchase order. B) Receiving record. C) Invoice. D) Bid. Show Answer Correct Answer: A) Purchase order. 8. A type of fixed order quantity model that determines the amount of an item to be purchased or manufactured at one time. A) Mean Absolute Deviation. B) Economic Order Quantity. C) Reorder Quantity. D) Safety Stock. Show Answer Correct Answer: B) Economic Order Quantity. 9. Actual buying of Products A) Procurement. B) Purchasing. C) Buying. D) Selling. Show Answer Correct Answer: B) Purchasing. 10. What is EOQ? A) Economics Order Quality. B) Economics Output Order. C) Economics Order Quantity. D) Ergonomics Order Quantity. Show Answer Correct Answer: C) Economics Order Quantity. 11. Stands for FIRST In, Still Here A) FISH. B) LIFO. C) HIFO. D) FIFO. Show Answer Correct Answer: A) FISH. 12. ..... involves reviewing your sales objectives, then making purchasing decisions. A) Planning purchases. B) Managing purchases. C) Inventory management. D) Inventory control. Show Answer Correct Answer: A) Planning purchases. 13. Loss of inventory for any raeson including damage, theft, or expiration. A) Inventory Shrinkage. B) Inventory Management. C) Physical Inventory. D) Usage. Show Answer Correct Answer: A) Inventory Shrinkage. 14. Those stocks or items used to support production (raw materials and work-in-process items. A) Stock Keeping Unit. B) Inventory. C) Finished Goods. D) Usage. Show Answer Correct Answer: B) Inventory. 15. The act of holding and handling goods in a ware-house is ..... ? A) Lead time. B) Safety stock. C) Warehousing. D) Usage rate. Show Answer Correct Answer: C) Warehousing. 16. Lead time is determined by which one of the following: A) The amount of storage space. B) The time taken for the supplier to deliver. C) The cost of holding stocks. D) The buffer stock level required. Show Answer Correct Answer: B) The time taken for the supplier to deliver. 17. How often should a physical inventory be conducted? A) Once or twice a week. B) Twice a month. C) Once or twice a year. D) Every 5 years. Show Answer Correct Answer: C) Once or twice a year. 18. Among different types of costs associated with inventory, the costs of obtaining purchase approvals are ..... A) Purchasing costs. B) Ordering costs. C) Stockout costs. D) Holding costs. Show Answer Correct Answer: B) Ordering costs. 19. What are the typical measures of inventory commitment? A) TIME DURATION, DEPTH, WIDTH OF COMMITMENT, CUSTOMER SATISFACTION. B) DEPTH, WIDTH OF COMMITMENT. C) TIME DURATION, DEPTH, WIDTH OF COMMITMENT. D) TIME DURATION, DEPTH, WIDTH OF COMMITMENT, EASY ACCESS. Show Answer Correct Answer: C) TIME DURATION, DEPTH, WIDTH OF COMMITMENT. 20. The activities and techniques of determining the desired levels of items. A) Inventory Planning. B) Inventory Policies. C) Inventory Management. D) Inventory Shrinkage. Show Answer Correct Answer: A) Inventory Planning. ← PreviousNext →Related QuizzesInventory Production QuizzesInventory And Production Management Quiz 1Inventory And Production Management Quiz 2Inventory 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