RP05 Inventory Management Procedure

What is the purpose of inventory control system?

• To interpret objective of inventory control system

• To create parts inventory checklist

• To update inventory information

• To maintain level of inventory items

What are the four types of inventory?

• Raw materials, work in progress, maintenance supplies, finished products

• Broadcasting, domestic, office supplies, medicines

• Laboratory, kitchen workshop, sports training, agricultural training

• Safety, facilities, inventory system, spare parts

What is the definition of inventory management?

• The process of storing unused goods for operational purposes

• The process of managing logistics activities

• The process of minimizing inventory and inventory holding costs

• The process of maintaining inventory levels

What are the objectives of inventory management?

• Minimizing and monitoring inventory performance

• Minimizing and monitoring ownership costs

• Ensuring inventory practices do not affect company's financial performance

• Ensuring best inventory practices are used and meet company's needs

What is the Economic Order Quantity (EOQ) method used for?

• Determining optimum order quantity to minimize variable costs

• Determining optimum order quantity to maximize demand

• Determining optimum order quantity to minimize fixed costs

• Determining optimum order quantity to maximize profit

What is the main objective of Material Requirement Planning (MRP)?

• To minimize inventory costs

• To ensure raw materials are always available

• To prioritize inventory based on value

• To implement a just-in-time system

What is the main objective of the ABC method in inventory management?

• To minimize inventory

• To avoid waste

• To reduce lead time

• To improve production processes

What is the main objective of the Just-in-Time (JIT) method?

• To minimize inventory

• To avoid waste

• To reduce lead time

• To improve production processes

What is the main objective of the JIT system?

• To eliminate scrap and rework

• To maintain high and consistent quality

• To reduce lot size

• To shorten lead time

What is the main objective of the Small Lot Size method?

• To reduce inventory cycle

• To save time and space

• To improve processing time

• To optimize workload scheduling and capacity utilization