Inventory and Inventory Control Quiz

What is inventory?

• A production technique

• A type of machinery

• A financial statement

• A detailed list of movable goods

Which of the following is NOT a type of inventory classification according to function?

• Work in process Inventory

• Production Inventory

• Raw Material Inventory

• Operating and Maintenance Inventory

What does EOQ stand for?

• Effective Order Quantity

• Economic Order Quantity

• Essential Order Quantity

• Estimated Order Quantity

What is the purpose of inventory control?

• To maximize stock levels

• To eliminate all inventory

• To minimize production costs

• To find out how much stock should be maintained

Which of the following is a characteristic of A-Class items in ABC analysis?

• They are always in high quantity

• They are low valued items

• They require minimal control

• They constitute 10% of items and account for 70% of total inventory cost

What is the maximum stock?

• The lowest quantity of stock allowed

• The maximum quantity of material allowed in stores

• The average stock level

• The quantity of stock that is always sold

What is the reorder point?

• The minimum stock level

• The average consumption rate

• The level of stock at which new orders are placed

• The maximum stock level

Which of the following is a merit of ABC analysis?

• It simplifies the production process

• It eliminates all low-value items

• It allows for concentration on high-value items

• It reduces the need for inventory

What is the lead time in inventory management?

• The time taken between placing an order and receiving materials

• The time taken to inspect goods

• The time taken to sell products

• The time taken to manufacture a product

What does the term 'buffer stock' refer to?

• Stock that is always sold

• Stock that is always in high demand

• Stock that is not usually consumed in normal circumstances

• Stock that is used for marketing