This quiz works best with JavaScript enabled. Home > Inventory Production > Inventory And Production Management > Inventory And Production Management – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inventory And Production Management Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the amount deducted from the selling price for pay-ment within a specified time period, such as 10 days? A) Cash discount. B) Sells discount. C) Quality discount. D) Trade discount. Show Answer Correct Answer: A) Cash discount. 2. The main purpose of establishing a reorder point is to: A) Avoid purchasing too much inventory if projections are incorrect. B) Avoid a stockout situation. C) Maintain adequate anticipation stock. D) Reduce the company's carrying costs. Show Answer Correct Answer: B) Avoid a stockout situation. 3. An inventory valuation method that assumes stock that was purchased first , is also the first to be sold. A) Last in Last Out. B) First in First Out. C) Roll on Roll Out. D) Pull in Pull Out. Show Answer Correct Answer: B) First in First Out. 4. A check used to move merchandise quickly to the sales floor is known as: A) Blind check. B) Spot check. C) Direct check. D) Quality check. Show Answer Correct Answer: A) Blind check. 5. What process does Toyota use to ensure inventory efficiency? A) Perpetual inventory. B) Buffer stock. C) Periodic inventory. D) Kanban. Show Answer Correct Answer: D) Kanban. 6. The total time it takes from placing an order to receiving the order is known as: A) Lead time. B) Stock time. C) Re-order time. D) Order time. Show Answer Correct Answer: A) Lead time. 7. What key aspect of inventory is focused on quickly and efficiently book-in, put away, pick, pack and ship inventory as and when needed at your various locations? A) Techniques. B) Tracking. C) Systems and Tools. D) Purchasing. Show Answer Correct Answer: A) Techniques. 8. What is the function of inventory control? A) Guarantee the availability of goods needed. B) Manage costs incurred by the company. C) Guarantee a high level of service at a reasonable cost. D) Maintain customer satisfaction so as not to complain. Show Answer Correct Answer: C) Guarantee a high level of service at a reasonable cost. 9. Which inventory method would be best used by someone selling dairy products to manage and evaluate inventory? A) JIC inventory. B) HIFO inventory. C) LIFO inventory. D) FIFO inventory. Show Answer Correct Answer: D) FIFO inventory. 10. When purchasing ..... are critical A) Objectives. B) Businesses. C) Order points. D) Levels. Show Answer Correct Answer: C) Order points. 11. Set up costs are analyse to which one of these costs A) Shortage. B) Holding. C) Excess. D) Ordering. Show Answer Correct Answer: D) Ordering. 12. A good match for a vendor has ..... A) Reliability. B) Close proximity. C) Good and applicable discounts. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. Stock losses will result in ..... A) An increase in Revenue. B) An increase in Expenses. C) An increase in Assets. D) An decrease in Liabilities. Show Answer Correct Answer: B) An increase in Expenses. 14. Goods in various stages of completion throughout the plant. A) Work In Process. B) Inventory. C) Physical Inventory. D) Finished Goods. Show Answer Correct Answer: A) Work In Process. 15. What is the time period required from the request for goods to be received and ready for use? A) Just in Time. B) Waiting Time. C) Order Time. D) Lead Time. Show Answer Correct Answer: D) Lead Time. 16. An inventory control system that uses computer chips attached to inventory items to track inventory is: A) Point of sale software. B) Manual tag system. C) Unit control system. D) RFID system. Show Answer Correct Answer: D) RFID system. 17. What are the negative impacts of inventory procurement? A) Speed of support to customers. B) Maintain production continuity. C) Minimizing the scarcity of goods. D) Accumulation of working capital. Show Answer Correct Answer: D) Accumulation of working capital. 18. Natural abilities an individual is born with A) Laissez-Faire Leadership. B) Traits. C) Transformational Leadership. D) Talents. Show Answer Correct Answer: D) Talents. 19. What is a discount that a vendor gives to a buyer who places large orders? A) Quality discount. B) Quantity discount. C) Cash discount. D) Sells discount. Show Answer Correct Answer: B) Quantity discount. 20. Which of the following is NOT a common cause of inventory shrinkage? A) Unexpectedly high sales. B) Product breakage. C) Data input errors. D) Theft. Show Answer Correct Answer: A) Unexpectedly high sales. ← PreviousNext →Related QuizzesInventory Production QuizzesInventory And Production Management Quiz 1Inventory And Production Management Quiz 2Inventory And Production Management Quiz 3Inventory 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