Materials Management Quiz

In a manufacturing company, Daniel is responsible for overseeing the materials management process. What is the primary objective of materials management?

• Reduce staff costs

• Ensure uninterrupted supply of materials

• Improve product aesthetics

• Increase advertising spending

Avery is managing a manufacturing plant and wants to reduce storage and insurance costs by keeping only what is needed for immediate production. Which inventory strategy should she implement?

• EOQ

• FIFO

• JIT

• LIFO

What does EOQ stand for?

• Estimated Order Quantity

• Economic Order Quantity

• Essential Order Quantity

• Evaluated Order Quantity

Which of the following is not one of the objectives of materials management?

• Enhance supplier relationship

• Support profitability

• Increase production time

• Use technology for control

Ethan is managing the inventory for his new online store. He wants to implement a system that helps him prioritize his stock based on their value and importance. What is the main benefit of ABC analysis in inventory management?

• Alphabetizing inventory

• Reducing labor costs

• Grouping items by value and importance

• Counting items faster

A company that sells its newest inventory first is using which method?

• FIFO

• EOQ

• JIT

• LIFO

In Michael's grocery store, which system updates inventory records in real-time?

• Periodic

• Perpetual

• FIFO

• EOQ

Which inventory challenge results from not being able to fulfill customer orders?

• Overstock

• Stockout

• Deadstock

• Backstock

Which inventory method is dependent on sales forecasts?

• JIT

• LIFO

• MRP

• FIFO

The main goal of inventory turnover is to:

• Keep stock in storage longer

• Track inventory locations

• Sell stock frequently to avoid excess

• Increase purchase orders