Inventory management

What does SKU mean in retail management?

• Stock Keeping Unit

• Standard Knowledge Unit

• Store Maintenance Utility

• Inventory Knowledge Update

What is the main purpose of a planogram in retail?

• Tracking inventory levels

• Determining shelf space allocation and location

• Managing delivery schedules

• Calculating sales forecasts

What does OSA mean in retail performance metrics?

• On-site Availability

• On Shelf Availability

• Out of Stock Analysis

• Operational Sales Assessment

What is the main purpose of safety stock in inventory management?

• Increase storage costs

• Protection against demand uncertainty and lead time

• Maximization of order quantities

• Reduction of replenishment cycles

What does EOQ mean in inventory management?

• Economic Order Quantity

• Effective Quality of Order

• Significant Amount of Order

• Estimated Quantity of Order

Which inventory management method focuses on minimizing inventory by receiving goods only as needed?

• MRP

• JIT (Just-In-Time)

• VMI

• ABC Analysis

What key benefit does Vendor Managed Inventory (VMI) provide?

• Increases the bullwhip effect

• Reduces product availability

• Improves product availability and partnerships

• Increases storage costs

What does ABC classification prioritize in inventory management?

• Items based on demand variability

• Items based on value, with strict control over high-value items

• Items based on physical size

• Items based on supplier location

What is the direct cost of stockouts?

• Reduction of customer goodwill

• Lost sales revenue

• Damage to brand reputation

• Compensation for delays

What is the formula for Economic Order Quantity (EOQ)?

• EOQ = √(2DS/H)

• EOQ = L × D + SS

• EOQ = D/S × H

• EOQ = H/(2DS)