Inventory Management Quiz

What is the primary goal of inventory management?

• To increase the number of products in storage

• To balance supply and demand effectively

• To reduce the number of employees

• To eliminate the need for warehousing

Why is maintaining accurate inventory records important?

• To reduce the number of suppliers

• To increase the number of employees

• To avoid errors and manage reordering effectively

• To ensure products are always on sale

Which type of inventory includes items that are in the process of being manufactured?

• Finished goods

• Raw materials

• Work in progress

• Safety stock

What is the role of safety stock in inventory management?

• To increase the number of products sold

• To act as a buffer against unexpected demand

• To reduce the need for warehousing

• To eliminate the need for demand forecasting

What is the first step in the inventory management process?

• Inventory auditing

• Inventory tracking

• Demand forecasting

• Reordering

What is the purpose of inventory auditing?

• To ensure actual stock matches records

• To increase the number of products in storage

• To eliminate the need for demand forecasting

• To reduce the number of employees

Which inventory management technique involves ordering products only when needed?

• ABC analysis

• Just in Time (JIT)

• Economic Order Quantity (EOQ)

• First In First Out (FIFO)

Which inventory management technique categorizes inventory into high, moderate, and low value?

• Just in Time (JIT)

• First In First Out (FIFO)

• ABC analysis

• Economic Order Quantity (EOQ)

What is the purpose of using technology in inventory management?

• To reduce human error and optimize stock levels

• To increase manual labor

• To increase the number of warehouses

• To eliminate the need for inventory audits

What challenge does inaccurate demand forecasting pose?

• It leads to increased employee turnover

• It causes stockouts or overstocking

• It eliminates the need for warehousing

• It reduces the number of suppliers