Inventory Control

The objective of inventory management is to minimize holding stock.

• TRUE

• FALSE

Which of the following is NOT a cost of holding inventories?

• opportunity cost

• storage cost

• cost of wastage

• elasticity of demand

This is the level of stocks that will trigger a new order to be sent to a supplier

• buffer stock

• re-order inventory level

• re-order quantity

• maximum inventory level

If inventories are not managed effectively, there will be sufficient stock to changing demand

• TRUE

• FALSE

'Lead time' means:

• time taken to deliver goods from the firm to consumers

• time between ordering inventories and their delivery

• time taken to produce goods after raw materials arrive

• time taken for inventories to fall from maximum to re-order level

Which of the following is NOT a form of inventory?

• raw materials

• work in progress

• finished goods

• goods with supplier

Inventory is another word for:

• cost

• staff

• stock

• manager

Which is NOT a cost of insufficient inventories?

• Lost sales

• cheap orders

• small order quantities

• expensive special orders

Inventory control charts include everything except:

• buffer inventory

• profit

• re-order level

• lead time

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