Warehouse management - Quiz 2

Overall Materials movement in the warehouse should be:

• Miminzed

• Maximized

Warehouse layout needs to be planned by thinking:

• Cubic Meter

• Square meter

Inventory components are raw materials, work in progress (WIP), finished goods, MRO Inventory and safety stock.

• True

• False

Why have inventory?

• to meet employee demand

• to meet customer demand

why hold inventory? to maintain smooth production processes

• True

• False

Sometimes inventory holding costs are called carrying costs.

• True

• False

Storage costs, insurance costs, obsolesce costs, depreciation and opportunity costs are called

• Ordering costs

• Holding costs

Obsolesce means

• New

• Outdated

Opportunity costs means the potential benefits lost when capital is tide up in inventory instead of being invented elsewhere

• True

• False

Ordering costs doesn't cover inspection costs

• True

• False