Inventory Management Quiz

What is the definition of inventory?

• Only raw materials

• Stock of any item or resources

• Only services

• Only finished goods

Which of the following is a type of inventory?

• Only finished products

• Only services

• Only cash

• Raw Material

What does cycle stock refer to?

• Stock that is in transit

• Stock that is obsolete

• Stock that is dead

• Stock replenished regularly

What is safety stock used for?

• To donate

• To sell below cost

• To increase prices

• To cover unpredictable demand

Which type of inventory is built up before peak seasonal demand?

• Cycle Stock

• In-Transit Inventory

• Dead Stock

• Seasonal Stock

What is the purpose of inventory management?

• To ensure right quantity and time

• To increase prices

• To avoid stockouts only

• To reduce customer satisfaction

What is in-transit inventory?

• Goods that are obsolete

• Goods being transported

• Goods that are not owned

• Goods that are sold

What is dead stock?

• Items no longer in demand

• Items that are in transit

• Items that are sold

• Items that are raw materials

What is the importance of inventory management?

• Reduces supply chain efficiency

• Leads to optimal inventory levels

• Increases stockouts

• Decreases customer satisfaction

What is speculative stock?

• Inventory purchased in anticipation of future events

• Inventory that is finished goods

• Inventory that is dead

• Inventory that is in transit