QCM Item Inventory Management

Which of the foUowing statements best describes stockkeeping units ?
1. Sodas in a 6-pack and 12-pack are the same SKU because the cans are the same SKU.
2. White shirts of different sizes but in the same size box are the same SKU.
3. Wires of different gauges that are stocked in reels are the same SKU.
4. Two white shirts in the same inventory but of different sizes or styles would be different SKUs.
If the order quantity is increased, which of the following occurs ?
1. The cost of carrying inventory decreases, and the cost of ordering increases.
2. The cost of carrying inventory increases, and the cost of ordering decreases.
3. The cost of carrying inventory increases, and the cost of ordering increases.
4. The cost of carrying inventory decreases, and the cost of ordering decreases.
ln developing the standard economic order quantity (EOQ) formula, which of the following assumptions are made ?
1. Demand for the item is relatively uniform.
2. Replenishment is in lots or batches that arrive all at once.
3. Ordering and carrying costs are constant and known.
4. All the above are assumed.
Which of the following statements is best ?
1. Order point = DDLT + SS
2. Average inventory = (Q + SS)/ 2
3. Safety stock is always needed.
4. Safety stock = order point + order quantity
Safety stock will primarily depend on which of the following ?
1. Variability of demand
2. Cost of carrying inventory
3. Cost of placing an order
4. Product obsolescence
Which of the following statements is most accurate ?
1. About 20% of the items will usually account for about 80% of the total usage value
2. A items should have the loosest possible control.
3. The general ruIe for using the ABC approach is to have plenty of everything in stock
4. C items account for about 50% of the total usage value.
Which of the following statements is best ?
1. A items usually account for about 50% of the total usage.
2. About 50% of the items usually account for 5% of the value.
3. C items should be given top priority in inventory management.
4. AlI inventory items should be managed in the same way.
What type of inventory record system keeps a continuous account of transactions as they occur ?
1. PerpetuaI inventory system
2. Periodic inventory system
3. Two-bin system
4. Safety stock system
If the lead time is one week, the review period one week, the average demand 100 units pèr week, and the safety stock 50 units, the target level will be:
1. 150 units
2. 200 units
3. 250 units
4. 300 units
Which of the following is an advantage of cycle counting ?
1. Timely detection and correction of problems
2. Reduction of direct labor costs
3. Use of spare labor
4. Replenishment of inventory

QCM Item Inventory Management

Quiz