CHAPTER 2: MANAGING INVENTORY CONTROL

_________ to the process of ordering, storing, using and selling a company’s inventory.

• Inventory management

• Raw materials

• Components

• Finished products

This includes the management of _____, components and finished products as well as _____ and processing of such items.

• warehousing, raw materials

• ordering, storing

• raw materials, warehousing

• processing, ordering

Individuals working in the supply chain should have at least a basic understanding of the roles, costs and benefits of _____.

• order point

• inventories

• order quantity

Inventory for which the level goes up and down due to the replenishment process is called ______.

• backup stock

• staple merchandise

• perpetual inventory

• cycle stock

_______ is the amount of inventory below which the quantity available shouldn’t go or else the item will be out of stock before the next order arrived, This number tells the buyers that when the inventory level; drops to this point, additional merchandise should be ordered.

• Order point

• Order quantity

• Level of backup stock

• Automated continuous replenishment

When inventory reaches the order point, the buyer or system needs to order enough units to ensure product availability before the next order arrives. This statement refers to ____.

• order point

• order quantity

• backup stock

• automated continuous replenishment

The vendor takes responsibility for the inventory held in the client’s premises. The vendor monitors inventory levels and organizes replenishment. This technique is using ______.

• Continuous Replenishment Programme

• Quick Response

• Vendor-managed inventory

• Category management

• 1. Focus on efficient replenishment of products

• 2. Part of Efficient Consumer Response (ECR) arena

These statements refers to ______

• Vendor-managed inventory (VMI)

• Continuous Replenishment Programme (CRP)

• Quick Response (QR)

• Efficient Consumer Response (ECR)

• 1. Fast Readable and has large storage capacity as compared to the Barcode.

• 2. The code consists of black modules arranged in a square pattern on a white board.

• Vendor-managed inventory (VMI)/

• Continuous Replenishment Programme (CRP)

• Efficient Consumer Response (ECR)

• Quick Response (QR)

• 1. Relies on shared forecasts and related business information and collaborative planning between retailers and vendors to improve supply chain efficiency and product replenishment.

• 2. Although retailers share sales and inventory data when using a VMI approach, the vendor remains respond for managing the inventory

• These statements refers to ____.

• CM

• VMI

• QR

• CPFR