Stock and asset management

The purpose of effective stock and inventory management and control is:

• To minimize costs and ensure product availability

• To increase product prices

• To reduce employee workload only

• To eliminate the need for suppliers

Which of the following best summarizes the key issues, risks, advantages, and disadvantages associated with different stock and inventory management practices?

• They involve balancing costs, minimizing stockouts, managing excess inventory, and ensuring efficient operations.

• They only focus on increasing sales regardless of inventory levels.

• They are solely concerned with reducing the number of employees in the warehouse.

• They require no monitoring or adjustment once a system is chosen.

The purpose and methodology of effective asset management is to:

• Maximize asset value and optimize performance through systematic planning and control.

• Increase company expenses by frequent asset replacement.

• Ignore asset maintenance to reduce costs.

• Focus only on short-term asset gains.

Which of the following best describes the advantages and disadvantages associated with methods of capacity management?

• They help balance supply and demand but may increase costs or complexity.

• They eliminate all operational risks.

• They guarantee maximum profit at all times.

• They remove the need for forecasting.

Fill in the blank: A _______ is a detailed list that can be easily searched, usually by use of an index.

• catalogue

• summary

• diagram

• formula

Fill in the blank: A _______ is a building where stock is kept prior to use or sale.

• warehouse

• library

• theater

• bakery

Which of the following is NOT a type of stock mentioned in the text?

• Raw materials

• Sub-assemblies

• Finished products

• Components

Match the following types of stock with their correct descriptions:

• These are the basic materials from which products are made.

• Work in progress

• Units assembled separately but incorporated into larger assemblies.

• Consumables

• Partially finished goods awaiting completion.

• Raw materials

• Individual parts of a product, like LEDs and sensors.

• Components

• Materials used during manufacturing but not part of the finished product.

• Sub-assemblies

Consumables are materials that are part of the finished product.

• True

• False

Work in progress refers to partially finished goods awaiting completion and sale.

• True

• False