SC INVENTORY AND STORAGE MANAGEMENT

1. What is the main purpose of safety or buffer stock in inventory management?

• 1. To increase production speed

• 1. To reduce storage costs

• 1. To protect against demand and supply fluctuations

• 1. To eliminate dead stock

1. Which type of inventory is held in anticipation of future demand or price increases?

• 1. Cycle stock

• 1. Dead stock

• 1. Speculative stock

• 1. 
     In-transit stock

1. What does in-transit stock refer to?

• 1. Goods stored in a warehouse

• 1. Goods that are being shipped but not yet delivered

• 1. Goods that are obsolete

• 1. Goods used for seasonal promotions

1. Which component of inventory carrying cost includes rent, heating, and lighting?

• 1. Capital cost

• 1. Inventory service cost

• 1. Storage space cost

• 1. Inventory risk cost

1. Cycle stock is inventory planned to be used during a specific period based on forecasts.

• TRUE

• FALSE

1. Dead stock refers to inventory that is frequently sold and restocked.

• TRUE

• FALSE

1. Inventory service cost includes insurance and taxes.

• TRUE

• FALSE

1. Speculative stock is purchased without considering future demand.

• TRUE

• FALSE

1. Capital cost in inventory refers to the cost of storing goods in a warehouse.

• TRUE

• FALSE

6. Which type of inventory is most likely to be affected by transportation delays?

• 6. Dead stock

• 6. In-transit stock

• 6. Seasonal stock

• 6. Cycle stock