Inventory Management & Control Flashcards
7 cards from real Amazon Area Manager Assessment practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Inventory Management & Control flashcards as text
What does the term 'cycle counting' refer to in warehouse inventory management?
Answer: Continuously counting a portion of inventory on a rotating schedule
Cycle counting involves regularly counting a subset of inventory items on a rotating basis to maintain ongoing accuracy without shutting down operations.
Which inventory management method assigns costs based on the assumption that the most recently purchased items are sold first?
Answer: LIFO (Last In, First Out)
LIFO assumes the last items purchased are the first items sold, which can affect reported profits during periods of changing costs.
What inventory accuracy rate does Amazon typically target for its fulfillment centers?
Answer: 98% or above
Amazon targets approximately 98% or higher inventory accuracy to ensure customer orders can be fulfilled reliably and defects are minimized.
What is 'dead stock' in a fulfillment center context?
Answer: Items that have not sold or moved for an extended period
Dead stock refers to items that haven't sold or moved for a prolonged period, tying up capital and warehouse space without generating revenue.
Which KPI directly measures the percentage of physical inventory that matches warehouse management system records?
Answer: Inventory Accuracy Rate
Inventory Accuracy Rate compares physical inventory counts against system records to measure how reliable the data is for operational decisions.
When a discrepancy is found during a cycle count, what should an Area Manager do first?
Answer: Investigate the root cause before making adjustments
Investigating the root cause before adjusting records helps identify systemic issues and prevents recurrence rather than simply masking the symptom.
What is the 'reorder point' in inventory management?
Answer: The inventory level at which a new replenishment order should be triggered
The reorder point is the inventory level that triggers a replenishment order, calculated based on lead time demand and safety stock requirements.