3.1 Retail Operations Basics Knowledge Check

Which of the following is not part of the retailer's role in inventory management?

• Ordering Product

• Stocking Product

• Delivering Product

• Receiving Product

A retailer's total inventory is:

• All inventory a retailer has on order
• All inventory available in the retailer's physical stores
• All inventory owned by the retailer, regardless of its location
• All inventory sold within the last year.

Other than in the stockroom, where is a store's inventory kept?

• At the distribution center
• On the sales floor
• At the manufacturer
• In the office.

The process of automatic or manual ordering to meet product demands is called:

• Inventory Replenishment
• RFID
• PLU
• Excess Inventory

The process of placing inventory on sales floor shelves, racks, or other displays to be sold is called:

• Back stock
• out of stock
• stocking
• excess inventory

Extra inventory kept on hand in case customers buy more than the company estimated before the next shipment arrives

• Safety Stock
• Out of Stock
• Back Stock
• Excess Inventory

A planogram is

• an emergency plan posted throughout the store.
• an easy to follow layout with instructions for arranging and stocking a merchandise display and positioning other fixtures and equipment.
• a follow up sent to a customer after a large purchase.
• a system for tracking inventory.

A retailer completes a physical audit of the store's inventory. The total inventory was $100,000. Accounting books say there should be $110,000 in inventory. What's the amount of the inventory variation?

• $100,000 overage
• $100,000 shortage
• $10,000 overage
• $10,000 shortage

Read the inventory scenario, then select the best answer below: A grocery store plans to sell 100 gallons of milk in a week so they purchase 100 gallons to merchandise on the shelf. Only 50 customers purchase gallons of milk and the other 50 gallons expire before they're sold. This is an example of which type of inventory scenario?

• Supply that meets or equals demand
• More supply than demand
• More demand than supply
• Demand that meets or equals supply

When planning for inventory, a company's goal is to have

• Supply that meets or equals demand.
• Less supply than demand
• Demand that meets or equals supply
• More supply than demand